High Skilled Migration and the Exertion of Effort by the Local Population
AbstractThe design of optimal immigration policy, particularly in the face of the spiralling demand for highly skilled workers, such as IT workers and engineers, is a topical issue in the policy debate as well as the economic literature. In this paper, we present empirical evidence from firm level data collected in 2000 on the demand in Europe for highly skilled workers in general and abroad and their determinants. Major findings are that the fraction of highly skilled recruited from the international labour market is very small, and it seems that foreign and domestic workers are very similar in terms of formal education, that is subject of specialisation, and job characteristics. We suggest an efficiency wage model that can explain why firms recruit foreign workers in small numbers and are willing to pay migrants the same wage as local workers and at the same time are willing to pay for moving costs, for example, that are specific to immigrating workers.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 540.
Length: 42 pages
Date of creation: Aug 2002
Date of revision:
Publication status: published in: Scottish Journal of Political Economy, 2009, 56 (3), 332–352
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Other versions of this item:
- Gil S. Epstein & Astrid Kunze & Melanie E. Ward, 2009. "High-Skilled Migration And The Exertion Of Effort By The Local Population," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(3), pages 332-352, 07.
- Epstein, Gil S & Kunze, Astrid & Ward-Warmedinger, Melanie, 2002. "High Skilled Migration and the Exertion of Effort by the Local Population," CEPR Discussion Papers 3477, C.E.P.R. Discussion Papers.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-09-11 (All new papers)
- NEP-GEO-2002-09-11 (Economic Geography)
- NEP-LAB-2002-09-11 (Labour Economics)
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