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Education, unemployment and migration

Author

Listed:
  • Wolfgang Eggert

    (University of Paderborn & CESifo)

  • Tim Krieger

    (University of Paderborn)

  • Volker Meier

    (Ifo Institute for Economic Research, University of Munich & CESifo)

Abstract

This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skilled-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

Suggested Citation

  • Wolfgang Eggert & Tim Krieger & Volker Meier, 2009. "Education, unemployment and migration," Working Papers CIE 7, Paderborn University, CIE Center for International Economics.
    • Handle: RePEc:pdn:ciepap:7
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    References listed on IDEAS

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    2. Wasim Qazi & Syed Ali Raza & Arshian Sharif, 2017. "Higher Education Development and Unemployment in Pakistan: Evidence from Structural Break Testing," Global Business Review, International Management Institute, vol. 18(5), pages 1089-1110, October.
    3. Wajahat Ali Ghulam & Waqas Ali* & Shujahat Ali & Muhammad Masood Khan & Raja Nasir Ali Khan & Muhammad Farooq, 2019. "Investigating Factors Influencing Brain Drain of Citizens of Azad Kashmir Pakistan," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(3), pages 782-788, 03-2019.
    4. Dreher, Axel & Krieger, Tim & Meierrieks, Daniel, 2011. "Hit and (they will) run: The impact of terrorism on migration," Economics Letters, Elsevier, vol. 113(1), pages 42-46, October.
    5. Boyd Hunter & Ben Edwards, 2011. "The impact of drought on carers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(2), pages 199-214.
    6. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," Working Papers CIE 27, Paderborn University, CIE Center for International Economics.
    7. Alexander Haupt & Tim Krieger & Thomas Lange, 2016. "Competition for the international pool of talent," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1113-1154, October.
    8. Dragomirescu-Gaina, Catalin & Weber, Anke, 2013. "Forecasting the Europe 2020 headline target on education and training: A panel data approach," MPRA Paper 68664, University Library of Munich, Germany.
    9. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(6), pages 587-606, December.
    10. Tina Dulam & Philip Hans Franses, 2015. "Emigration, wage differentials and brain drain: the case of Suriname," Applied Economics, Taylor & Francis Journals, vol. 47(23), pages 2339-2347, May.
    11. Camilo Alberto Cárdenas Hurtado & María Alejandra Hernández Montes & Jhon Edwar Torres Gorron, 2014. "An Exploratory Analysis of Heterogeneity on Regional Labour Markets and Unemployment Rates in Colombia: An MFACT approach," Borradores de Economia 802, Banco de la Republica de Colombia.
    12. Łukasz Byra, 2023. "Two possible reasons behind the reluctance of low-skilled workers to migrate to generous welfare states," Working Papers 2023-24, Faculty of Economic Sciences, University of Warsaw.
    13. Gega Todua, 2017. "Financing Education Abroad: A Developing Country Perspective," CERGE-EI Working Papers wp608, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    14. Henrietta Nyamnjoh, 2021. "Ambitions of Bushfalling through Further Education: Insights from Students in Cameroonian Universities," Social Inclusion, Cogitatio Press, vol. 9(1), pages 196-206.
    15. Alexander Haupt & Silke Übelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economics Research Papers 2014-020, Friedrich-Schiller-University Jena.
    16. Youngjin Woo & Min Jiang & Euijune Kim, 2021. "Analyzing return migration of high school graduates from lagging regions," Letters in Spatial and Resource Sciences, Springer, vol. 14(3), pages 309-319, December.
    17. Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 560-570, August.
    18. Dulam, T.W. & Franses, Ph.H.B.F., 2014. "Microeconomic determinants of skilled migration: The case of Suriname," Econometric Institute Research Papers EI 2014-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    19. Volker Meier, 2010. "Programme selection in active labour market policy by one's own contribution?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(17), pages 27-29, September.
    20. Hana STOJANOVÁ & Pavel TOMŠÍK, 2014. "Factors influencing employment for tertiary education graduates at the selected universities," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(8), pages 376-387.
    21. Kotorri Mrika, 2017. "The probability of return conditional on migration duration: evidence from Kosovo," South East European Journal of Economics and Business, Sciendo, vol. 12(2), pages 35-46, December.

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    More about this item

    Keywords

    Brain drain; Brain gain; Education; Unemployment; Interregional migration; Externalities;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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