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Migration of skilled workers: Policy interaction between host and source countries

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  • Djajić, Slobodan
  • Michael, Michael S.
  • Vinogradova, Alexandra

Abstract

We examine the interaction between policies of the host and source countries in the context of a model of skilled-worker migration. The host country aims to provide low-cost labor for its employers while also taking into consideration the fiscal burden of providing social services to immigrants. It optimizes by setting a time limit on the duration of a guest-worker's permit. The source country maximizes its net output by optimally choosing the amount of training provided to its citizens, some of whom may migrate. We solve for the Nash and cooperative-equilibrium values of the policy instruments.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 96 (2012)
Issue (Month): 11 ()
Pages: 1015-1024

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Handle: RePEc:eee:pubeco:v:96:y:2012:i:11:p:1015-1024

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Temporary migration; Skilled labor; Immigration policy;

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References

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Cited by:
  1. Naiditch, Claire & Vranceanu, Radu, 2013. "A two-country model of high skill migration with public education," ESSEC Working Papers WP1301, ESSEC Research Center, ESSEC Business School.
  2. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute for the Study of Labor (IZA).
  3. Slobodan Djajic & Michael S. Michael, 2014. "International Migration of Skilled Workers with Endogenous Policies," CESifo Working Paper Series 4748, CESifo Group Munich.
  4. Fernández-Huertas Moraga, Jesús & Rapoport, Hillel, 2014. "Tradable immigration quotas," Journal of Public Economics, Elsevier, vol. 115(C), pages 94-108.

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