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Migration and human capital in an endogenous fertility model

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  • Luca Marchiori
  • Patrice Pieretti
  • Benteng Zou

    ()
    (CREA, University of Luxembourg)

Abstract

What is the impact of high-skilled emigration on fertility and human capital in migrants’ origin countries? This question is analyzed within an overlapping generations model where parents choose to finance higher education to a certain number of their children. It follows that families are composed of high- and low-skilled children who may both emigrate with a certain probability when they reach adulthood. It is found that a brain drain leads to a change in children’s skill composition, with parents choosing to provide higher education to a larger number of their children. A calibration of the model suggests that, following a brain drain, the additional children benefiting from higher education might in the long run compensate for the loss of high-educated workers and lead to a brain gain.

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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 09-04.

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Date of creation: 2009
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Handle: RePEc:luc:wpaper:09-04

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  1. Faini, Riccardo, 2006. "Remittances and the Brain Drain," IZA Discussion Papers 2155, Institute for the Study of Labor (IZA).
  2. Hung-Ju Chen, 2006. "International migration and economic growth: a source country perspective," Journal of Population Economics, Springer, vol. 19(4), pages 725-748, October.
  3. Mountford, A., 1995. "Can a brain drain be good for growth?," Discussion Paper 1995-8, Tilburg University, Center for Economic Research.
  4. Yoko NIIMI & Caglar OZDEN & Maurice SCHIFF, 2010. "Remittances and the Brain Drain: Skilled Migrants Do Remit Less," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 123-141.
  5. DE LA CROIX, David & DOEPKE, Matthias, 2001. "Inequality and Growth : Why Differential Fertility Matters," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2001008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
  7. Matthias Doepke, 2002. "Child Mortality and Fertility Decline: Does the Barro-Becker Model Fit the Facts?," UCLA Economics Working Papers 824, UCLA Department of Economics.
  8. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  9. Docquier, Frédéric, 2006. "Brain Drain and Inequality Across Nations," IZA Discussion Papers 2440, Institute for the Study of Labor (IZA).
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Cited by:
  1. Şule Akkoyunlu, 2013. "Migration-Induced Women’s Empowerment: The Case of Turkey," RSCAS Working Papers 2013/77, European University Institute.

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