Selection in Return Migration: the Role of the Ethnic Networks

Majlinda Joxhe

ERSA conference papers from European Regional Science Association

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.

Date: 2012-10
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