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Massive Migration and its Effect on Human Capital and Growth: The Case of Western Balkan and Central and Eastern European Countries

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  • Michael Landesmann

    (The Vienna Institute for International Economic Studies, wiiw)

  • Isilda Mara

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

We analyse the effect of massive migration particularly from the Western Balkans and the Central and Eastern European countries on human capital and growth. In our analysis, we use a system of three equations to estimate simultaneously the effect of migration on human capital and on growth. An important driver of migration is chain migration, as well as the unemployment and income differentials between developing and developed countries. Overall, our findings suggest that migration of highly skilled from the Western Balkan and Central Eastern European countries has been beneficial to economic growth and income convergence of these countries. Our analysis supports the positive impact of low-skilled migration on the composition of human capital in the source countries.

Suggested Citation

  • Michael Landesmann & Isilda Mara, 2016. "Massive Migration and its Effect on Human Capital and Growth: The Case of Western Balkan and Central and Eastern European Countries," wiiw Balkan Observatory Working Papers 124, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:124
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    More about this item

    Keywords

    migration; brain drain; brain gain; economic growth; human capital;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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