Migration and Remittances
This is the fourth in our series of posts by students on the job market this year.
Institutions are widely believed to be important drivers of development. Recently, economists have begun using detailed micro data to study how historical institutions can shape development outcomes decades or even centuries down the line. But for anyone interested in development, a key question is what causes institutions to change over time. Here, the evidence is more scant. In my job market paper, my co-author Erik Prawitz and I ask if large-scale emigration can be a mechanism leading to political change in origin countries.
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?