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Selection in Return Migration: the Role of the Ethnic Networks

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  • Majlinda Joxhe

Abstract

Selection in Return Migration: the Role of the Ethnic Networks Majlinda Joxhe Abstract This paper attempts to identify the peer effects of the ethnic networks on the migration process among return migrants. Exploring a simple theoretical model I show how the size of the network reduce the re-migration cost at different level of education, thus determine a diverse selection process. As Borjas (1985, 1987) evidence, migration is not randomly drawn from the distribution of the home country population and this form of “self-selection†has implications for studying their assimilation. On the other hand, also the out-migration can be selective generating consequences on the performance of the immigrants (Borjas and Bratsberg 1996). Empirically, I find positive selection among districts with weak migration networks and negative selection among districts with strong migration network. Using micro data for the United Kingdom , the empirical evidence reconfirms the theories advocated by Hanson (2005) and Borjas (1997) regarding self-selection on migration. JEL classification: F22; J31; R12 Keywords: Migration; Wage Differential; Ethnic networks; Understanding Society (UK) References: Bellemare, Ch. 2007. 'A Life-Cycle Model of Outmigration and Economic Assimilation of Immigrants in Germany.' European Economic Review, 51, 553-76. Borjas, G.J. 1987. 'Self-Selection and Earnings of Immigrants.' The American Economic Review, 77 (4), 531-53. George J. Borjas and Bernt Bratsberg “Who Leaves? The Outmigration of the Foreign-Born†The Review of Economics and Statistics Vol. 78, No. 1 (Feb., 1996), pp. 165-176 Carrington W. J., Detragiache E., Vishwanath T. 1996. 'Migration with Endogenous Moving Costs.' The American Economic Review, 86 (4), 909-30. Damm, A. P. 2009. 'Determinants of Recent Immigrants’ Location Choices: Quasi-Experimental Evidence.' Journal of Population Economics, 22, 145-74 Djajic S., Milbourne R. 1988. 'A General Equilibrium Model of Guest-Worker Migration.' Journal of International Economics, 25, 335-51. Dustmann Ch. 2003. 'Return Migration, Wage Differentials, and the Optimal Migration Duration.' European Economic Review, 47, 353–69. Dustmann Ch., Weiss Y. 2007. 'Return Migration: Theory and Empirical Evidence from the UK.' British Journal of Industrial Relations, 45 (2), 236–56 Harris J. R., Todaro M. P. 1970. 'Migration, Unemployment and Development: A Two-Sector Analysis ' The American Economic Review, 60 (1), 126-42. Rooth D.-O., Saarela J. 2007. 'Selection in Migration and Return Migration: Evidence from Micro Data.' Economics Letters, 94, 90–95. University of Essex. Institute for Social and Economic Research and National Centre for Social Research, Understanding Society: Wave 1, 2009-2010 [computer file]. 2nd Edition. Colchester, Essex: UK Data Archive [distributor], September 2011. SN: 6614.

Suggested Citation

  • Majlinda Joxhe, 2012. "Selection in Return Migration: the Role of the Ethnic Networks," ERSA conference papers ersa12p463, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa12p463
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    References listed on IDEAS

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    1. Bellemare, Charles, 2007. "A life-cycle model of outmigration and economic assimilation of immigrants in Germany," European Economic Review, Elsevier, vol. 51(3), pages 553-576, April.
    2. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
    3. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-930, September.
    4. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 145-174, January.
    5. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    6. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence," RF Berlin - CReAM Discussion Paper Series 0702, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    7. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, June.
    8. Rooth, Dan-Olof & Saarela, Jan, 2007. "Selection in migration and return migration: Evidence from micro data," Economics Letters, Elsevier, vol. 94(1), pages 90-95, January.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    migration; wage differential; ethnic networks; understanding society (uk) references: bellemare; ch. 2007. 'a life-cycle model of outmigration and economic assimilation of immigrants in germany.' european economic review; 51; 553-76. borjas; g.j. 1987. 'self-selection and earnings of immigrants.' the american economic review; 77 (4); 531-53. george j. borjas and bernt bratsberg “who leaves? the outmigration of the foreign-born†the review of economics and statistics vol. 78; no. 1 (feb.; 1996); pp. 165-176 carrington w. j.; detragiache e.; vishwanath t. 1996. 'migration with endogenous moving costs.' the american economic review; 86 (4); 909-30. damm; a. p. 2009. 'determinants of recent immigrants’ location choices: quasi-experimental evidence.' journal of population economics; 22; 145-74 djajic s.; milbourne r. 1988. 'a general equilibrium model of guest-worker migration.' journal of international economics; 25; 335-51. dustmann ch. 2003. 'return migration; wage differentials; and the optimal migration duration.' european economic review; 47; 353–69. dustmann ch.; weiss y. 2007. 'return migration: theory and empirical evidence from the uk.' british journal of industrial relations; 45 (2); 236–56 harris j. r.; todaro m. p. 1970. 'migration; unemployment and development: a two-sector analysis ' the american economic review; 60 (1); 126-42. rooth d.-o.; saarela j. 2007. 'selection in migration and return migration: evidence from micro data.' economics letters; 94; 90–95. university of essex. institute for social and economic research and national centre for social research; understanding society: wave 1; 2009-2010 [computer file]. 2nd edition. colchester; essex: uk data archive [distributor]; september 2011. sn: 6614.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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