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Head-content or Headcount? Short-term Skilled Labour Movements as a Source of Growth

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Author Info
Massimiliano Tani () (UNSW@ADFA and IZA)
Abstract

This paper contributes a theoretical model to study the effects of short-term movements of skilled labour on a country’s economic growth. As traditional migration models emphasise the long-term effects of migration on factor endowments, they typically omit the analysis of gross labour flows. Gross flows however capture the volume of interactions and knowledge exchanges between workers living in different countries, which in turn affect the stock of knowledge available to their places of residences, and hence their ability to innovate and grow. A simulation based on available US, British and Australian data on international business visits reveals that short-term skilled labour movements have a positive and not insignificant effect on growth.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1934.

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Length: 25 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:iza:izadps:dp1934

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Related research
Keywords: international migration; temporary labour movements; skilled labour; economic growth;

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Find related papers by JEL classification:
F2 - International Economics - - International Factor Movements and International Business
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September. [Downloadable!] (restricted)
  3. Dustmann, Christian, 2000. "Temporary Migration and Economic Assimilation," IZA Discussion Papers 186, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Leahy, Dermot & Neary, J Peter, 2004. "Absorptive Capacity, R&D Spillovers and Public Policy," CEPR Discussion Papers 4171, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Constant, Amelie & Zimmermann, Klaus F., 2003. "Circular Movements and Time Away from the Host Country," IZA Discussion Papers 960, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Zimmermann, Klaus F., 2004. "European Labour Mobility: Challenges and Potentials," IZA Discussion Papers 1410, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Slaughter, Matthew J., 2000. "Production transfer within multinational enterprises and American wages," Journal of International Economics, Elsevier, vol. 50(2), pages 449-472, April. [Downloadable!] (restricted)
  8. Adrian Wood, 2002. "Globalization and wage inequalities: A synthesis of three theories," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 54-82, March. [Downloadable!] (restricted)
  9. Steve Dowrick, 2003. "Ideas and Education: Level or Growth Effects?," NBER Working Papers 9709, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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