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Selective Immigration Policies, Human Capital Accumulation and Migration Duration in Infinite Horizon

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Author Info

  • Francesco Magris

    (EPEE, University of Evry-Val d’Essonne)

  • Giuseppe Russo

    ()
    (DISES, University of Salerno and PSE)

Abstract

An increasing literature encourages the use of selective immigration policies as a tool to promote incentives to education. It is argued that, since not everybody is allowed to migrate, under these policies a poor country may well turn out with more human capital than in autarchy. The implicit assumption is that migrations are permanent. However, this assumption has recently been dropped: a large literature studies the optimal migration duration in an intertemporal framework. In our work we study how selective immigration policies affect the human capital accumulation and the migration duration. Unlike most of the existing literature, the probability of entering abroad is endogenous and our analisys is not limited to two periods: there is no reason to consider a single migration spell, and our infinite-horizon model includes an aggregate shock as a source of constrained migration. Contrary to the "brain gain with a brain drain" reasoning, we show that selective policies may be harmful for human capital accumulation. As a consequence, their effectiveness is questionable, and they may produce a "brain loss" rather than a brain gain. Besides, borders closure backfires on migration duration especially for unskilled workers.

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Bibliographic Info

Paper provided by Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne in its series Documents de recherche with number 05-11.

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Length: 36 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:eve:wpaper:05-11

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Related research

Keywords: return migration; human capital; brain drain;

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References

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  1. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
  2. Michel, BEINE & Frédéric, DOCQUIER & Hillel, RAPOPORT, 2006. "Brain drain and human capital formation in developing countries : winners and losers," Discussion Papers (ECON - Département des Sciences Economiques) 2006023, Université catholique de Louvain, Département des Sciences Economiques.
  3. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
  4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  5. CRETTEZ , Bertrand & MICHEL , Philippe & VIDAL , Jean-Pierre, 1995. "Time Preference and Labour Migration in an OLG Model with Land and Capital," CORE Discussion Papers 1995046, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
  7. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
  8. Dustmann, Christian & Kirchkamp, Oliver, 2001. "The Optimal Migration Duration and Activity Choice after Re-migration," IZA Discussion Papers 266, Institute for the Study of Labor (IZA).
  9. Lundborg, Per & Segerstrom, Paul S., 1998. "The Growth and Welfare Effects of International Mass Migration," Working Paper Series 146, Trade Union Institute for Economic Research.
  10. REICHLIN, Pietro & RUSTICHINI, Aldo, 1993. "Diverging Patterns in a Two Country Model with Endogenous Labor Migration," CORE Discussion Papers 1993032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies.
  12. Edward P. Lazear, 1995. "Culture and Language," NBER Working Papers 5249, National Bureau of Economic Research, Inc.
  13. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
  14. Hill, John K., 1987. "Immigrant decisions concerning duration of stay and migratory frequency," Journal of Development Economics, Elsevier, vol. 25(1), pages 221-234, February.
  15. 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.
  16. Barry Chiswick & Timothy J.. Hatton, 2003. "International Migration and the Integration of Labor Markets," NBER Chapters, in: Globalization in Historical Perspective, pages 65-120 National Bureau of Economic Research, Inc.
  17. Galor, Oded & Stark, Oded, 1991. "The probability of return migration, migrants' work effort, and migrants' performance," Journal of Development Economics, Elsevier, vol. 35(2), pages 399-405, April.
  18. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
  19. Sherrie Kossoudji, 1992. "Playing Cat and Mouse at the U.S.-Mexican Border," Demography, Springer, vol. 29(2), pages 159-180, May.
  20. 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.
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Cited by:
  1. Russo, Giuseppe, 2008. "Voting over Selective Immigration Policies with Immigration Aversion," MPRA Paper 6845, University Library of Munich, Germany.
  2. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.

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