Transnational Career Advantages: Earnings Growth of Japanese Self-initiated Expatriates

Kenji Ishida^*

• Institute of Social Science, University of Tokyo, Tokyo, Japan

This paper examines the economic outcomes of self-initiated expatriate (SIE) Japanese workers compared to domestic Japanese workers. Using longitudinal survey data from the ADIOS-J project (2020-2022) tracking Japanese expatriates and the JLPS dataset for domestic workers, the study tests two hypotheses: (1) Japanese SIEs experience higher earnings growth than domestic workers, and (2) returning to Japan economically penalizes SIEs. Results support the first hypothesis. Japanese expatriates experienced approximately 6% annual earnings growth after controlling for observable and unobservable factors, while domestic Japanese workers' earnings remained virtually stagnant (around 1% annual growth). However, earnings levels varied significantly among expatriate categories—SIEs in multinational companies earned more than domestic workers, while SIEs in Japanese-owned companies had comparable earnings to domestic workers. The second hypothesis was not supported. The apparent economic penalty for SIEs returning to Japan was largely explained by job characteristics and pre-migration conditions rather than the return itself. For SIEs in multinational companies, returning to Japan appeared initially beneficial, but this premium was substantially explained by job characteristics. These findings reveal that transnational careers economically benefit Japanese middle-class workers, challenging conventional views of upward mobility occurring primarily within domestic labor markets. The research contributes to understanding middle-class migration from high-income countries within Asia's rapidly growing economic centers. (207 words)