Why Don't Migrants with Secondary Education Return?

Abstract

The paper attempts to explain a U-shaped pattern of return migration rates with respect to educational attainment. We develop a two period OLG model with emigration and return migration decisions undertaken by agents heterogeneous in terms of educational attainment. The immigration policy is considered as an additional determinant for the migration decision. The model predicts that the combination of two forces - relative returns to schooling and uncertain opportunities for status adjustment - results in favorable conditions for migrants with secondary education to remain abroad permanently.