THE LABOUR MARKET PERFORMANCE OF YOUNG RETURN MIGRANTS AFTER THE CRISIS IN CEE COUNTRIES: THE CASE OF ESTONIA

Maryna Tverdostup and Jaan Masso

No 98, University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia)

Abstract: This paper extends the earlier literature on the effects of return migration by studying selection and labour market performance in terms of the wages of young returnees in particular. The topic is motivated by young people’s various labour market issues and their high exposure to the consequences of the recent financial crisis. We use the Estonian Labour Force Survey data and the Estonian Population and Housing Census 2011 data in combination with the Estonian Tax and Customs Office data on individual payroll taxes. The econometric analysis focuses on the selection to temporary migration and estimation of wage premium to return, along with the decomposition of the returnee-stayer wage gap using the Oaxaca-Blinder approach and an investigation of wage premium dynamics over time after the return. The results generally show higher returns from temporary labour migration for young people relative to older people, and among youth the share of the unexplained fraction of the wage premium is also higher. These results imply a stronger role of experience gained abroad on earnings for youth.

Keywords: return migration; labour market outcomes; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: F22 J31 J61 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015
New Economics Papers: this item is included in nep-cis, nep-eur, nep-mig, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The labour market performance of young return migrants after the crisis in CEE countries: the case of Estonia (2016)
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