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Guest-Worker Migration, Human Capital and Fertility

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  • Leonid V. Azarnert

Abstract

This work focuses on a temporary guest-worker-type migration of individuals from the middle class of the wealth distribution. The article demonstrates that the possibility of a low-skilled guest-worker employment in a higher wage foreign country lowers the relative attractiveness of the skilled employment in the home country. Thus it prevents a fraction of individuals from acquiring human capital. Therefore, even if all individuals who acquired education remain in the home country, the actual number of educated workers in the source economy decreases, and the aggregate level of human capital in this economy would thus be negatively affected.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-04/cesifo1_wp3429.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3429.

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Date of creation: 2011
Date of revision:
Handle: RePEc:ces:ceswps:_3429

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Keywords: migration; human capital; fertility; brain drain; economic growth;

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References

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  1. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
  2. Bernt Bratsberg & James F. Ragan Jr., 2002. "The Impact of Host-Country Schooling on Earnings: A Study of Male Immigrants in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 63-105.
  3. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
  4. Antman, Francisca M., 2011. "The intergenerational effects of paternal migration on schooling and work: What can we learn from children's time allocations?," Journal of Development Economics, Elsevier, vol. 96(2), pages 200-208, November.
  5. 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.
  6. David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Department of Economics, Bar-Ilan University.
  7. Galor, Oded & Mountford, Andrew, 2008. "Trading Population for Productivity: Theory and Evidence," CEPR Discussion Papers 6678, C.E.P.R. Discussion Papers.
  8. Galor, Oded, 2004. "From Stagnation to Growth: Unified Growth Theory," CEPR Discussion Papers 4581, C.E.P.R. Discussion Papers.
  9. Mountford, Andrew & Rapoport, Hillel, 2011. "The brain drain and the world distribution of income," Journal of Development Economics, Elsevier, vol. 95(1), pages 4-17, May.
  10. Pia M. Orrenius & Madeline Zavodny, 2001. "Self-selection among undocumented immigrants from Mexico," Working Paper 2001-1, Federal Reserve Bank of Atlanta.
  11. Galor, Oded & Moav, Omer, 2001. "Natural Selection and the Origin of Economic Growth," CEPR Discussion Papers 2727, C.E.P.R. Discussion Papers.
  12. Dahan, Momi & Tsiddon, Daniel, 1998. " Demographic Transition, Income Distribution, and Economic Growth," Journal of Economic Growth, Springer, vol. 3(1), pages 29-52, March.
  13. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
  14. Stark, Oded & Fan, C. Simon, 2006. "International Migration and "Educated Unemployment"," Discussion Papers 7126, University of Bonn, Center for Development Research (ZEF).
  15. Azarnert, L.V.Leonid V., 2004. "Redistribution, fertility, and growth: The effect of the opportunities abroad," European Economic Review, Elsevier, vol. 48(4), pages 785-795, August.
  16. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
  17. David A. Grigorian & Tigran A. Melkonyan, 2011. "Destined to Receive: The Impact of Remittances on Household Decisions in Armenia," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 139-153, 02.
  18. Mountford, A., 1995. "Can a brain drain be good for growth?," Discussion Paper 1995-8, Tilburg University, Center for Economic Research.
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Cited by:
  1. Sona Schovankova, 2013. "Determinants of the Spatial Distribution of Foreign Empolyees on Different Skilled Positions: The Case of the Czech Republic," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 115-139, June.
  2. Leonid V. Azarnert, 2014. "Agricultural Exports, Tariffs and Growth," CESifo Working Paper Series 4583, CESifo Group Munich.
  3. Etkes, Haggay, 2011. "The impact of employment in Israel on the Palestinian labor force (2005–08)," MPRA Paper 34681, University Library of Munich, Germany.

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