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Selection in Return Migration: the Role of the Ethnic Networks

Joxhe, Majlinda
Year of Publication: 
Series/Report no.: 
52nd Congress of the European Regional Science Association: "Regions in Motion - Breaking the Path", 21-25 August 2012, Bratislava, Slovakia
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.
Wage Differential
Ethnic networks
Understanding Society (UK)
Document Type: 
Conference Paper

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