The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation

Abstract This article develops and estimates a dynamic model where individuals differ in ability location preference to evaluate the mechanisms that affect evolution of immigrants’ careers conjunction with their re-migration plans. Our analysis highlights novel form selective return migration those who plan stay longer invest more into skill acquisition, important implications for assessment career paths estimation earnings profiles. study also explains willingness immigrants accept jobs at wages seem unacceptable natives. Finally, our provides insight design policies, showing policies initially restrict residence or condition on achievement shape not only profiles through impact human capital investment but determine selection arrivals leavers.