The Prospect of Migration, Sticky Wages, and “Educated Unemployment”
AbstractAn increase in the probability of work abroad, where the returns to schooling are higher than at home, induces more individuals in a developing country to acquire education, which leads to an increase in the supply of educated workers in the domestic labor market. Where there is a sticky wage-rate, the demand for labor at home will be constant. With a rising supply and constant demand, the rate of unemployment of educated workers in the domestic labor market will increase. Thus, the prospect of employment abroad causes involuntary âeducated unemploymentâ at home. A government that is concerned about âeducated unemploymentâ and might therefore be expected to encourage unemployed educated people to migrate will nevertheless, under certain conditions, elect to restrict the extent of the migration of educated individuals.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 19 (2011)
Issue (Month): 2 (05)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
Other versions of this item:
- Stark, Oded & Fan, C. Simon, 2011. "The Prospect of Migration, Sticky Wages, and "Educated Unemployment"," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 98572, University of Bonn, Center for Development Research (ZEF).
- Fan, C. Simon & Stark, Oded, 2011. "The prospect of migration, sticky wages, and 'educated unemployment'," University of Tuebingen Working Papers in Economics and Finance 9, University of Tuebingen, Faculty of Economics and Social Sciences.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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