The Selection of Migrants and Returnees : Evidence from Romania and Implications
This paper uses micro data from the Demographic National Survey and the Census in Romania (2002-2003) and in Countries that have received large number of Romanian immigrants over the period 1990-2000 (US, Austria and Spain) to identify the wage ear...
| Main Authors: | , , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/724911468105857021/The-selection-of-migrants-and-returnees-evidence-from-Romania-and-implications http://hdl.handle.net/10986/27908 |
| Summary: | This paper uses micro data from the
Demographic National Survey and the Census in Romania
(2002-2003) and in Countries that have received large number
of Romanian immigrants over the period 1990-2000 (US,
Austria and Spain) to identify the wage earning ability
(skills) of migrants and returnees relative to non-migrants.
This determines what is called 'selection'. Using
observable characteristics (education, age, gender and
family status) that affect wage earning abilities of
non-migrant, migrants to specific countries and returnees
the authors can construct measures of average selection
across skills for each skill group. Also, by observing the
actual wages of these groups in Romania, US, Austria and
Spain the author can measure the average and the
skills-specific premium for migrating and for returning. As
the three receiving countries differ in their skill
compensation structure we can test the hypothesis that
migration to a country is larger for those groups that
receive higher migration premium. The authors find strong
support for the idea that migrants in different skill groups
move depending on the premium that they will get in the
receiving country. Similarly the authors find evidence of a
premium to returnee that is increasing in their skills,
which drives positive selection of returnees. As migration
and return seem consistent with optimal utility-maximizing
choices of individuals the authors use a model of education,
migration and return to predict the effects of increasing
international mobility on skill and wage of Romanians. The
authors find average positive long-run effect on average
skills and wages in Romania from relaxing migration constraint. |
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