Migration probability as an incentive for human capital accumulation when information is asymmetric
AbstractThis paper demonstrates the significant role of a migration probability on the premigration level of human capital accumulation in the source country. The study suggests that the opportunity to migrate to another, superior technology country, may well lead to a “brain gain” for the prospective migrants. Adversely, since the individuals face an opportunity to migrate illegally when the legal staus is refused, an information asymmetry arises. Because in many countries laws are not enforced against visibly present illegal immigrants, the information symmetry between the social planner in the source country and the rest of the world cannot be reinstated efficiently. This mismatch leads to a “brain drain” in the source country from the social point of view.
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Bibliographic InfoPaper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2002024.
Length: 13 pages
Date of creation: Aug 2002
Date of revision:
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