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Wage Effects of High-Skilled Migration: International Evidence

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  • Volker Grossmann
  • David Stadelmann

Abstract

The international migration of high-skilled workers may trigger productivity effects at the macro level such that the wage rate of skilled workers increases in host countries and decreases in source countries. We exploit data on international bilateral migration flows and provide evidence consistent with this theoretical hypothesis. We propose various instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and the wages of skilled workers between pairs of source and destination countries. These strategies aim to address the endogeneity problem that arises when international wage differences affect migration decisions. Copyright 2013, Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Economic Review.

Volume (Year): 27 (2013)
Issue (Month): 2 ()
Pages: 297-319

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Handle: RePEc:oup:wbecrv:v:27:y:2013:i:2:p:297-319

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Cited by:
  1. Grossmann, Volker & Schäfer, Andreas & Steger, Thomas M., 2013. "Migration, Capital Formation, and House Prices," IZA Discussion Papers 7225, Institute for the Study of Labor (IZA).
  2. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79956, Verein für Socialpolitik / German Economic Association.

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