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Migration under Asymmetric Information and Human Capital Formation

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  • Chau, Nancy H
  • Stark, Oded

Abstract

We study the migration of skilled workers, along with the skill acquisition incentives created by the prospect of migration. We trace out the dynamics of migration as foreign employers accumulate experience in deciphering the skill levels of individual migrants. It is found that migration by the relatively highly skilled is followed by return-migration from both tails of the migrant skill distribution; that the possibility of migration induces skill acquisition at home; that until the probability of discovery reaches its steady state equilibrium, migration consists of a sequence of moves characterized by a rising average skill level; and that migration of skilled workers can entail a home-country welfare gain. Copyright 1999 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 7 (1999)
Issue (Month): 3 (August)
Pages: 455-83

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Handle: RePEc:bla:reviec:v:7:y:1999:i:3:p:455-83

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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Cited by:
  1. Vianney Dequiedt & Yves Zenou, 2011. "International Migration, Imperfect Information and Brain Drain," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011009, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Kar, Saibal, 2009. "International labor migration, asymmetric information and occupational choice," MPRA Paper 24106, University Library of Munich, Germany.
  3. Suedekum, Jens, 2003. "Subsidizing education in the economic periphery: Another pitfall of regional policies?," Center for European, Governance and Economic Development Research Discussion Papers 17, University of Goettingen, Department of Economics.
  4. Suedekum, Jens, 2003. "Subsidizing education in the economic periphery: Another pitfall of regional policies?," Center for European, Governance and Economic Development Research Discussion Papers 17, University of Goettingen, Department of Economics.
  5. Beladi, Hamid & Marjit, Sugata & Broll, Udo, 2011. "Capital mobility, skill formation and polarization," Economic Modelling, Elsevier, Elsevier, vol. 28(4), pages 1902-1906, July.
  6. Kar, Saibal & Saha, Bibhas, 2011. "Asymmetric Information in the Labor Market, Immigrants and Contract Menu," IZA Discussion Papers 5508, Institute for the Study of Labor (IZA).
  7. Kar, Saibal & Beladi, Hamid, 2004. "Skill formation and international migration: welfare perspective of developing countries," Japan and the World Economy, Elsevier, Elsevier, vol. 16(1), pages 35-54, January.
  8. Panu Poutvaara, 2003. "Educating Europe," Public Economics, EconWPA 0302008, EconWPA.
  9. Mayr Karin & Peri Giovanni, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," The B.E. Journal of Economic Analysis & Policy, De Gruyter, De Gruyter, vol. 9(1), pages 1-52, November.
  10. Saibal Kar & Basudeb Guha-Khasnobis, 2006. "Foreign Capital, Skill Formation, and Migration of Skilled Workers," Journal of Economic Policy Reform, Taylor & Francis Journals, Taylor & Francis Journals, vol. 9(2), pages 107-123.
  11. Chaudhuri, Sarbajit & Bandopadhyay, Titas Kumar, 2012. "Endogenous skill formation, foreign capital and education subsidy in a dual economy," MPRA Paper 41631, University Library of Munich, Germany.
  12. Ozan Hatipoglu & Serhan Sadikoglu, 2013. "No Brain Gain without Brain Drain? Dynamics of Return Migration and Human Capital Formation under Asymmetric Information," Working Papers, Bogazici University, Department of Economics 2013/09, Bogazici University, Department of Economics.
  13. Yabuuchi, Shigemi & Chaudhuri, Sarbajit, 2009. "Skill Formation, Capital Adjustment Cost and Wage Inequality," MPRA Paper 18381, University Library of Munich, Germany.

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