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Education, unemployment and migration

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Author Info

  • 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.

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File URL: http://groups.uni-paderborn.de/fiwi/RePEc/pdf/wpaper/WP07.pdf
File Function: Revised version, 2009
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Bibliographic Info

Paper provided by University of Paderborn, CIE Center for International Economics in its series Working Papers with number 7.

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Length: 27 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:pdn:wpaper:7

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Related research

Keywords: Brain drain; Brain gain; Education; Unemployment; Interregional migration; Externalities;

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References

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Citations

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Cited by:
  1. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," Working Papers 27, University of Paderborn, CIE Center for International Economics.
  2. 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.
  3. Volker Meier, 2010. "Programmauswahl in der aktiven Arbeitsmarktpolitik durch Selbstbeteiligung?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(17), pages 27-29, 09.
  4. Dulam, T. & Franses, Ph.H.B.F., 2011. "Emigration, wage differentials and brain drain: The case of Suriname," Econometric Institute Report EI 2011-33, Erasmus University Rotterdam, Econometric Institute.

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