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Time spent abroad as a source of human capital – A nationwide study

Year: 2025

Type: article

Abstract: This study examined the extent to which time spent abroad contributes to human capital, using higher income as an indicator. Utilising Finnish register data, the study focused on returning migrants with higher education ( N = 3497), matched with a reference population ( N = 30,882). Time abroad was associated with a higher income level upon return amongst men (returnees €63,199, reference €55,982), but not amongst women (returnees €39,316, reference €41,779). In sectors, such as industry, construction, sales and finance, returnees showed particularly significant income differences compared to the reference group. However, even in these sectors, the association between international experience and subsequent income levels appeared to be notably stronger amongst men than women. In these sectors, men's income grew more, with increases of €8678 to €19,363 annually, while women's gains were €1685 to €9582. Overall, while time abroad enhances human capital, the benefits vary substantially by gender and sector. Men experienced clearer income growth compared to their counterparts in the reference group, whereas for women, no similar accumulation of human capital was identified.

Source: International Migration

DOI: 10.1111/imig.70011

Authors: Minna Toivanen, Jaakko Airaksinen, Pekka Varje, Jarno Turunen, Aki Koskinen, Ari Väänänen

Institution: Finnish Institute of Occupational Health

Language: English

Topic: Migration and Labor Dynamics

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Gender equality

Open Access status: hybrid

Estimated APC paid: $3,500