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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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Keywords: return migration; human capital; brain drain;

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References

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  1. 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.
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  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.
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  8. Michel Beine & Frédéric Docquier & Hillel Rapoport, . "Brain drain and human capital formation in developing countries: winners and losers?," ULB Institutional Repository 2013/10415, ULB -- Universite Libre de Bruxelles.
  9. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
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  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. 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).
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  16. 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.
  17. 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.
  18. Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1996. "Time preference and labour migration in an OLG model with land and capital," Journal of Population Economics, Springer, vol. 9(4), pages 387-403.
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Cited by:
  1. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.
  2. Giuseppe Russo, 2008. "Voting over Selective Immigration Policies with Immigration Aversion," EERI Research Paper Series EERI_RP_2008_14, Economics and Econometrics Research Institute (EERI), Brussels.

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