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High‐Skilled Migration And The Exertion Of Effort By The Local Population

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  • Gil S. Epstein
  • Astrid Kunze
  • Melanie E. Ward

Abstract

The optimal design of immigration policy is a topical issue, both in the policy debate and the economic literature. In this paper, we present empirical evidence from a firm level dataset collected in 2000 on the demand for high‐skilled workers, including foreign workers, in Europe and its determinants. Our major findings are that the fraction of high‐skilled workers recruited from the international labour market is very small, and that foreign and domestic workers are very similar in terms of their formal education (measured by specialization subject) and their job characteristics. We suggest an efficiency wage model to explain why firms recruit foreign workers in small numbers, and why they are willing to pay immigrants the same wage as local workers, whilst at the same time also paying for their moving costs, despite the similar human capital profile of immigrants to domestic workers.

Suggested Citation

  • Gil S. Epstein & Astrid Kunze & Melanie E. Ward, 2009. "High‐Skilled Migration And The Exertion Of Effort By The Local Population," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(3), pages 332-352, July.
    • Handle: RePEc:bla:scotjp:v:56:y:2009:i:3:p:332-352
    DOI: 10.1111/j.1467-9485.2009.00487.x
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    4. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute of Labor Economics (IZA).
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    1. repec:zbw:rwidps:0011 is not listed on IDEAS
    2. Gil S. Epstein, 2013. "Frontier issues of the political economy of migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 22, pages 411-431, Edward Elgar Publishing.
    3. Thomas K. Bauer & Astrid Kunze, 2004. "The demand for high-skilled workers and immigration policy," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(1), pages 77-88.
    4. Thomas Bauer & Astrid Kunze, 2003. "The Demand for High-skilled Worker and Immigration Policy," RWI Discussion Papers 0011, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    5. Bossler, Mario, 2013. "Recruiting abroad: the role of foreign affinity and labour market scarcity," IAB-Discussion Paper 201319, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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