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The impact of migration on origin countries: a numerical analysis

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  • Luca Marchiori

    () (CREA, University of Luxembourg)

  • Patrice Pieretti

    () (CREA, University of Luxembourg)

  • Benteng Zou

    () (CREA, University of Luxembourg)

Abstract

The focus of this article is on the impact of high-skilled emigration on fertility and human capital of a sending country within an overlapping generations model where parents choose to finance higher education to a certain number of their children. We assume that high- and low-skilled children emigrate with a certain probability when they reach adulthood and that they send remittances to their parents back home. The model shows that an increase in the intensity of the brain drain induces parents to provide more higher education to their children and to raise less low-skilled children. The impact on fertility and on human capital formation however remains unclear. This is why we run numerical simulations by calibrating our model to a developing country like the Philippines. The calibration results show in particular, that increased brain drain lowers fertility and boosts long-run human capital formation in the sending country.

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Bibliographic Info

Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 10-06.

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Date of creation: 2010
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Handle: RePEc:luc:wpaper:10-06

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Keywords: Simulation method; migration; fertility;

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  1. de la Croix, David & Docquier, Frederic & Liegeois, Philippe, 2007. "Income growth in the 21st century: Forecasts with an overlapping generations model," International Journal of Forecasting, Elsevier, vol. 23(4), pages 621-635.
  2. 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.
  3. 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.
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