Returns to returning with sibling comparisons: Register-based evidence from Finland

<p dir="ltr">How experience of migration affects the labor market outcome after remigration is difficult to examine since both migration and remigration processes are driven by various mechanisms of selection. In the current study, we investigate the labor market outcomes of return migration in Finland in the late 20th century. With Finnish register data 1987-2019, we use a counterfactual sibling fixed-effect design comparing the return migrants to their siblings of the same sex who have not migrated, to control for the influence of family background and pre-adolescent experience. We show that compared to their same-sex siblings who have no migration experience, return migrants have substantial higher risk of unemployment in labor market, which recovers gradually over time. For income, return migrants are overrepresented at both the lower and the upper end of the income distribution, which implies that they are likely to have either very low or very high income compared to non-migrant siblings. We argue that the labor market disadvantages of return migrants to Finland is likely due to the disruption of social network during the years spent abroad. However, the disadvantage can be overcome over time and with the reintegration to the Finnish labor market.</p>