**TABLE 3. Effect of High-Skilled Emigration Rates on Wage Differences between Countries (Instrumental Variables Estimations)**

|||De|pendent variab|le:**RelWage8**|**0ij,t**|||D|ependent variab|le:**RelWage9**|**0ij,t**||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||_(1)_|_(2)_|_(3)_|_(4)_|_(5)_|_(6)_|_(7)_|_(8)_|_(9)_|_(10)_|_(11)_|_(12)_|
|SMigijt|0.6026***|0.2490***|0.5948***|0.2125***|0.6676***|0.5447|0.5888***|0.2795***|0.5788***|0.2360***|0.6875***|0.6382|
|,|(0.1457)|(0.0673)|(0.1406)|(0.0653)|(0.2123)|(0.4028)|(0.1443)|(0.0588)|(0.1374)|(0.0557)|(0.2193)|(0.4059)|
|UMigijt-1||5.2286***||5.5204***||2.7071||4.5736***||4.9178***||1.5121|
|,||(1.9307)||(2.0235)||(4.5031)||(1.6763)||(1.8263)||(4.2180)|
|Other controls|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|
|Origin FE|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|YES|
|Adj._R_<sup>_2_</sup>|0.8609|0.8611|0.8607|0.8610|0.8590|0.8608|0.8582|0.8585|0.8583|0.8589|0.8563|0.8581|
|N|1010|1010|1010|1010|1010|1010|1010|1010|1010|1010|1010|1010|
|F-Test (first stage)|25.09|68.44|24.74|69.07|15.91|18.73|25.09|68.44|24.74|69.07|15.91|18.73|
|J-Test|-|-|0.8055|0.7491|0.7022|0.6947|-|-|0.8055|0.7491|0.7022|0.6947|
|Instruments used|TotalMigij,t-1|TotalMigij,t-1|TotalMigij,t-1+<br>Distij+|TotalMigij,t-1+<br>Distij+|TotalMigij,1960+<br>Disti+|TotalMigij,1960+<br>Disti+|TotalMigij,t-1|TotalMigij,t-1|TotalMigij,t-1+<br>Distij+|TotalMigij,t-1+<br>Distij+|TotalMigij,1960+<br>Disti+|TotalMigij,1960+<br>Disti+|
||||ComLangij+|ComLangij+|ComLangij+|ComLangij+|||ComLangij+|ComLangij+|ComLangij+|ComLangij+|
||||Contigij|Contigij|Contigij|Contigij|||Contigij|Contigij|Contigij|Contigij|
||||||_First stage (pa_|_rtial correlatio_|_ns)_||||||
|TotalMigij,t-1|0.0198***|0.0196***|0.0196***|0.0463***|||0.0459***|0.0198***|0.0196***|0.0463***|||
||(5.5e<sup>−04</sup>)|(5.7e<sup>−04</sup>)|(5.7e<sup>−04</sup>)|(8.8e<sup>−04</sup>)|||(8.8e<sup>−04</sup>)|(5.5e<sup>−04</sup>)|(5.7e<sup>−04</sup>)|(8.8e<sup>−04</sup>)|||
|TotalMigij,P1960|||||1.8e<sup>−04</sup>***|9.5e<sup>−05</sup>***|||||1.8e<sup>−04</sup>***|9.5e<sup>−05</sup>***|
||||||(1.6e<sup>−05</sup>)|(1.7e<sup>−05</sup>)|||||(1.6e<sup>−05</sup>)|(1.7e<sup>−05</sup>)|
|Distij||−0.0099|−0.0099|−0.0205***|−0.0145|−0.0088|||−0.0099|−0.0205***|−0.0145|−0.0088|
|||(0.0068)|(0.0068)|(0.0046)|(0.0096)|(0.0089)|||(0.0068)|(0.0046)|(0.0096)|(0.0089)|
|ComLangij||0.0277*|0.0277*|0.0050|0.1294***|0.0904***|||0.0277*|0.0050|0.1294***|0.0904***|
|||(0.0151)|(0.0151)|(0.0102)|(0.0209)|(0.0197)|||(0.0151)|(0.0102)|(0.0209)|(0.0197)|
|Contigij||−0.0772***|−0.0772***|−0.0207|−0.0516|−0.0830***|||−0.0772***|−0.0207|−0.0516|−0.0830***|
|||(0.0236)|(0.0236)|(0.0159)|(0.0334)|(0.0312)|||(0.0236)|(0.0159)|(0.0334)|(0.0312)|

_Note:_ All dependent variables are expressed in logs and represent relative differences between countries j and i. SMigij,t (UMigij,t-1) denotes the stock of high- (low-) skilled emigrants from country i living in country j divided by the stock of high- (low-) skilled residents in i. All estimations include RelInvestij,t-1, RelUrbanij,t-1, RelPrimSchoolij,t-1 and RelTertSchoolij,t-1 as additional control variables. TotalMigij,t-1, Distij, ComLangij, and Contigij represent the share of the emigrant population from country i living in country j, the distance between i and j, whether i and j share a common language, and whether i and j have a common border, respectively. Table A1 in the appendix provides additional information on all variables and instruments. Robust standard errors are in parentheses and clustered for migration destinations.*** indicates a significance level below 1 percent; ** indicates a significance level between 1 and 5 percent; * indicates a significance level between 5 and 10 percent.

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