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International Migration, Skill Acquisition and Matching Frictions

Author

Listed:
  • Hung-Ju Chen

    (National Taiwan University)

  • Xiangbo Liu

    (Renmin University of China)

Abstract

This paper investigates the impacts of the prospect of work abroad on a sending countryÂ’s labor market outcomes in a search and matching environment with endogenous skill acquisition. Our model allows firms to adjust their demand of labor to changes in the prospect of work abroad. We show that an increase in the probability of work abroad for skilled (unskilled) workers discourages job entry in the skilled (unskilled) labor market, and makes it more difficult for skilled (unskilled) workers to find employment. Therefore, such change may not always result in an increase in the fraction of skilled workers, depending on the value of work abroad.

Suggested Citation

  • Hung-Ju Chen & Xiangbo Liu, 2015. "International Migration, Skill Acquisition and Matching Frictions," Economics Bulletin, AccessEcon, vol. 35(3), pages 1469-1476.
    • Handle: RePEc:ebl:ecbull:eb-15-00295
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I3-P147.pdf
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    References listed on IDEAS

    as
    1. Fan, C. Simon & Stark, Oded, 2007. "International migration and "educated unemployment"," Journal of Development Economics, Elsevier, vol. 83(1), pages 76-87, May.
    2. C. Simon Fan & Oded Stark, 2007. "The brain drain, 'educated unemployment', human capital formation, and economic betterment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15, pages 629-660, October.
    3. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    4. Mortensen, Dale T, 1982. "Property Rights and Efficiency in Mating, Racing, and Related Games," American Economic Review, American Economic Association, vol. 72(5), pages 968-979, December.
    5. C. Simon Fan & Oded Stark, 2007. "The brain drain, ‘educated unemployment’, human capital formation, and economic betterment1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(4), pages 629-660, October.
    6. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
    7. Stark, Oded & Byra, Lukasz, 2012. "A back-door brain drain," Economics Letters, Elsevier, vol. 116(3), pages 273-276.
    8. Kolm, Ann-Sofie & Tonin, Mirco, 2015. "Benefits conditional on work and the Nordic model," Journal of Public Economics, Elsevier, vol. 127(C), pages 115-126.
    9. Oded Stark & C. Simon Fan, 2009. "The Brain Drain, ‘Educated Unemployment’, Human Capital Formation, and Economic Betterment," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Corruption, Development and Institutional Design, chapter 7, pages 120-151, Palgrave Macmillan.
    10. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Brain drain; Labor search and matching; Migration; Skill.;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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