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Returns to migration, education and externalities in the European Union

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This paper uses microeconomic data for more than 100,000 European individuals in order to analyse whether the individual economic returns to education vary between migrants and non-migrants and whether any differences in earnings between these two groups 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 do not discriminate in the returns to education between migrants and non-migrants. Household, regional and supra-regional externalities influence the economic returns to education 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.

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en

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http://eprints.lse.ac.uk/28708/

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