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Wage effects of high-skilled migration : international evidence

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  • Grossmann, Volker
  • Stadelmann, David

Abstract

The international migration of high-skilled workers may trigger productivity effects at the macro level such that the wage rate of skilled workers increases in host countries and decrease in source countries. The authors exploit data on international bilateral migration flows and provide evidence consistent with this theoretical hypothesis. They propose various instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and the wages of skilled workers between pairs of source and destination countries. These strategies aim to address the endogeneity problem that arises when international wage differences affect migration decisions.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6317.

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Date of creation: 01 Jan 2013
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Handle: RePEc:wbk:wbrwps:6317

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Keywords: Population Policies; Labor Markets; International Migration; Labor Policies; Human Migrations&Resettlements;

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References

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  1. Nicola Gennaioli & Rafael Laporta & Florencio López-de-Silanes & Andrei Schleifer, 2011. "Human capital and regional development," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 1286, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2012.
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  6. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 275-289, February.
  7. Cristina Cattaneo, 2008. "International Migration, the Brain Drain and Poverty:A Cross Country Analysis," KITeS Working Papers, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy 212, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jan 2008.
  8. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(4), pages 1373-1408, November.
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  10. Silvio Hong Tiing Tai & Tobias Müller, 2014. "Individual Attitudes Towards Migration: A Reexamination Of The Evidence," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Grad 100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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  12. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
  13. Grossmann, Volker & Stadelmann, David, 2010. "Does International Mobility of High-Skilled Workers Aggravate Between-Country Inequality ?," FSES Working Papers, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland 416, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
  14. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(4), pages 1335-1374, November.
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  18. Grossmann, Volker & Stadelmann, David, 2008. "International Mobility of the Highly Skilled, Endogenous R&D, and Public Infrastructure Investment," IZA Discussion Papers 3366, Institute for the Study of Labor (IZA).
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Cited by:
  1. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," FSES Working Papers, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland 442, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
  2. Grossmann, Volker & Schäfer, Andreas & Steger, Thomas M., 2013. "Migration, capital formation, and house prices," Working Papers, University of Leipzig, Faculty of Economics and Management Science 116, University of Leipzig, Faculty of Economics and Management Science.

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