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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 La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2013. "Human Capital and Regional Development," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 105-164.
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Cited by:
  1. Volker Grossmann & Andreas Schäfer & Thomas Steger, 2013. "Migration, Capital Formation, and House Prices," CESifo Working Paper Series 4146, CESifo Group Munich.
  2. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," IZA Discussion Papers 7385, Institute for the Study of Labor (IZA).

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