Edward Levavasseur : edward.levavasseur[at]etu.univ-amu.fr
Lara Vivian : lara.vivian[at]univ-amu.fr
This paper investigates how cultural barriers relate to labor market outcomes of migrants. I provide evidence that cultural distance between the origin and destination country negatively affects migrants' earnings. To disentangle cultural from language barriers, I focus my analysis on European migrants fluent in the language of their destination country. I address selection issues by comparing these migrants to natives from the European Labor Force Survey. Estimating a Roy model of migration, I conclude that cultural distance decreases the returns to migrants' human capital. Hereby, cultural differences reduce financial incentive to migrate.