Returns to Migration, Education, and Externalities in the European Union

42 Pages Posted: 12 Apr 2010

See all articles by Andrés Rodríguez-Pose

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Vassilis Tselios

London School of Economics & Political Science (LSE) - Department of Economics; Newcastle University - Centre for Urban and Regional Development Studies

Date Written: April 12, 2010

Abstract

Relatively little attention has been paid to the role that externalities play in determining the pecuniary returns to migration. This paper addresses this gap, using microeconomic data for more than 100,000 individuals living in the European Union (EU) for the period 1994-2001 in order to analyse whether the individual economic returns to education vary between migrants and nonmigrants and whether any observed differences in earnings between migrants and locals are affected by household and/or geographical (regional and interregional) externalities. The results point out that while education is a fundamental determinant of earnings., European labour markets – contrary to expectations – do not discriminate in the returns to education between migrants and non-migrants. The paper also finds that household, regional, and interregional externalities influence the economic returns to education, but that they do so in a similar way for local, intranational, and supra-national migrants. The results are robust to the introduction of a large number of individual, household, and regional controls.

Keywords: Individual Earnings, Migration, Educational Attainment, Externalities, Household, Regions, Europe

JEL Classification: J

Suggested Citation

Rodríguez-Pose, Andrés and Tselios, Vassilis, Returns to Migration, Education, and Externalities in the European Union (April 12, 2010). FEEM Working Paper No. 25.2010. Available at SSRN: https://ssrn.com/abstract=1588024 or http://dx.doi.org/10.2139/ssrn.1588024

Andrés Rodríguez-Pose (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Vassilis Tselios

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Newcastle University - Centre for Urban and Regional Development Studies

Newcastle NE1 7RU
United Kingdom

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