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Migration and Remittances

The Return of the Migrants: Do Employers Value their Foreign Work Experience? Guest Post by Paolo Abarcar

This is the first of our series of posts by students on the job market this year.
Return migration is an important channel through which migrant-sending countries stand to benefit from international migration. Experts often cite “brain gain” as its chief benefit: migrants not only bring back their original human capital but also new skills, connections, and experience acquired in foreign countries (see for example IOM 2008, Dayton-Johnson et al. 2009, and this UN report). But whether or not domestic employers in fact value foreign work experience in production processes at home is unclear. Skills learned abroad may be irrelevant. Worse, absence from the local labor market could be detrimental if the skills that employers value depreciate as a migrant spends time abroad. In my job market paper, I examine precisely this question: do employers actually value the foreign work experience of returning migrants?

Some new experiments trying to help more people emigrate from the Philippines

David McKenzie's picture
Moving from a developing to a developed country results in immediate large increases in income for the migrants, with gains that far exceed those of any other development policy intervention (e.g. Clemens et al 2008; McKenzie et al. 2010, Gibson and McKenzie, forthcoming).