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Brain Drain, Remittances, and Fertility

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Author Info
Luca Marchiori
Patrice Pieretti
Benteng Zou () (CREA, University of Luxembourg)

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Abstract

This paper analyzes the effects of skilled migration and remittances on fertility decisions at origin. We develop an overlapping generations model which accounts for endogenous fertility and education. Parents choose the number of children they want to raise and decide upon how many children obtain higher education. Only high skilled individuals migrate with a certain probability and remit to their parents. We find that an increase in the probability to emigrate leads both high and low skilled parents to send more children to obtain higher education. However the effect on the number of children is ambiguous. In a further analysis, we calibrate the model to match different characteristics of a developing economy. When the destination country relaxes the immigration restrictions, more high skilled individuals leave the origin country. The result is that, at origin, increased high skilled emigration reduces fertility and fosters human capital accumulation.

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Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 08-04.

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Date of creation: 2008
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Handle: RePEc:luc:wpaper:08-04

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
F24 - International Economics - - International Factor Movements and International Business - - - Remittances
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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  1. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
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  9. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies. [Downloadable!]
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  11. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October. [Downloadable!] (restricted)
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  13. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September. [Downloadable!]
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  14. Riccardo Faini, 2007. "Remittances and the Brain Drain: Do More Skilled Migrants Remit More?," World Bank Economic Review, Oxford University Press, vol. 21(2), pages 177-191, May. [Downloadable!] (restricted)
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  17. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
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