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Skills and Talent of Immigrants:A Comparison between the European Union and the United States

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  • Giovanni Peri

    (Department of Economics, University of California Davis)

Abstract

The nineties has been a period of increasing migratory flows from less developed countries to industrialized nations. It is instructive to compare the two largest economies in the world, the European Union and the United States, in terms of the magnitude, trends and composition of their migratory inflows. While the two economies are similar in terms of size and level of development, the European Union still lags behind in its ability to attract immigrants and in the degree of internal mobility of its citizens. Moreover we document a general feature that became more prominent during the nineties. While both economies attracted less educated workers (primary school graduates) as well as highly educated workers (college graduates) from less developed countries, the United States have been able to attract “talent”,( i.e. the best among the skilled workers) from all over the world at a rate unmatched by the European Union. In fact the US attracted a large number of talents from the European Union itself during the nineties. This “brain drain” (probably driven by the large economic reward granted by the American economy to scientific, technological and professional talent) is worrisome for the European Union. Its ability to keep pace with the economic growth of the United States depends, in fact, on its ability to compete in the scientific and technological fields.

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Bibliographic Info

Paper provided by University of California, Davis, Department of Economics in its series Working Papers with number 524.

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Length: 31
Date of creation: 01 Jul 2005
Date of revision:
Handle: RePEc:cda:wpaper:05-24

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Keywords: growth; migration; union;

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References

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  1. Gordon H. Hanson & Antonio Spilimbergo, 1996. "Illegal Immigration, Border Enforcement, and Relative Wages: Evidence from Apprehensions at the U.S.-Mexico Border," Research Department Publications 4036, Inter-American Development Bank, Research Department.
  2. Winter-Ebmer, Rudolf & Zweimüller, Josef, 1996. "Immigration, Trade, and Austrian Unemployment," CEPR Discussion Papers 1346, C.E.P.R. Discussion Papers.
  3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
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  5. Randall Filer, 1992. "The Effect of Immigrant Arrivals on Migratory Patterns of Native Workers," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 245-270 National Bureau of Economic Research, Inc.
  6. George J. Borjas, 1991. "Immigration and Self-Selection," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 29-76 National Bureau of Economic Research, Inc.
  7. Saint-Paul, Gilles, 2004. "The Brain Drain: Some Evidence from European Expatriates in the United States," IDEI Working Papers 307, Institut d'Économie Industrielle (IDEI), Toulouse.
  8. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
  9. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  10. Maurice Obstfeld & Giovanni Peri, 1998. "Regional non-adjustment and fiscal policy," Economic Policy, CEPR & CES & MSH, vol. 13(26), pages 205-259, 04.
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Cited by:
  1. Riccardo Crescenzi & A. Rodriguez-Pose & Michael Storper, 2007. "The geographical processes behind innovation: a Europe-United States comparative analysis," Departmental Working Papers of Economics - University 'Roma Tre' 0081, Department of Economics - University Roma Tre.
  2. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2011. "Immigration and Innovation in European Regions," IZA Discussion Papers 5676, Institute for the Study of Labor (IZA).

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