Migration and Dynamics: How a Leakage of Human Capital Lubricates the Engine of Economic Growth
AbstractThis paper studies the growth dynamics of a developing country under migration. Assuming that human capital formation is subject to a strong enough, positive intertemporal externality, the prospect of migration will increase growth in the home country in the long run. If the external effect is less strong, there exists at least a level effect on the stock of human capital in the home country. In either case, the home country experiences a welfare gain, provided that migration is sufficiently restrictive. These results, obtained in a dynamic general equilibrium setting, extend and strengthen the results of Stark and Wang (2002) obtained in the context of a static model.
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Bibliographic InfoPaper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 155027.
Date of creation: Jul 2013
Date of revision:
Overlapping-generations growth model; Intertemporal human capital externalities; Long-run growth effect of the prospect of migration; Social welfare gains; Community/Rural/Urban Development; Institutional and Behavioral Economics; Labor and Human Capital; F22; I30; J24; J61; O15; O40;
Other versions of this item:
- Sorger, Gerhard & Stark, Oded & Wang, Yong, 2013. "Migration and dynamics: How a leakage of human capital lubricates the engine of economic growth," International Review of Economics & Finance, Elsevier, vol. 28(C), pages 26-37.
- Sorger, Gerhard & Stark, Oded & Wang, Yong, 2013. "Migration and dynamics: How a leakage of human capital lubricates the engine of economic growth," University of Tuebingen Working Papers in Economics and Finance 58, University of Tuebingen, Faculty of Economics and Social Sciences.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-23 (All new papers)
- NEP-DGE-2013-08-23 (Dynamic General Equilibrium)
- NEP-HRM-2013-08-23 (Human Capital & Human Resource Management)
- NEP-LAB-2013-08-23 (Labour Economics)
- NEP-MIG-2013-08-23 (Economics of Human Migration)
- NEP-URE-2013-08-23 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Stark, Oded & Wang, Yong, 2001.
"Inducing Human Capital Formation: Migration as a Substitute for Subsidies,"
100, Institute for Advanced Studies.
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"Human capital depletion, human capital formation, and migration: a blessing or a "curse"?,"
Elsevier, vol. 60(3), pages 363-367, September.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human Capital Depletion, Human Capital Formation, and Migration. A Blessing in a "Curse"?," Economics Series 55, Institute for Advanced Studies.
- Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998. "Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?," Departmental Working Papers _096, Chinese University of Hong Kong, Department of Economics.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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