A back-door brain drain
AbstractIn this paper we study the impact of the international migration of unskilled workers on skill formation and the average skill level in the home country. We analyze what appears to be the least threatening scenario from the point of view of its effect on the supply of skills at home: namely, migration exclusively by unskilled workers. Somewhat surprisingly, we find that even without the departure of skilled workers, the home country suffers reduced aggregate skill formation. Although as a response to a higher wage rate per unit of human capital in the new equilibrium skilled workers choose to accumulate more human capital than before the opening up to migration of unskilled workers, the number and share of skilled workers in the home country's workforce fall. The combined effect is a decrease in the average level of human capital in the home country. --
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Bibliographic InfoPaper provided by University of Tuebingen, Faculty of Economics and Social Sciences in its series University of Tuebingen Working Papers in Economics and Finance with number 31.
Date of creation: 2012
Date of revision:
Migration of unskilled workers; Human capital formation; Depletion of human capital;
Other versions of this item:
- Stark, Oded & Byra, Lukasz, 2012. "A back-door brain drain," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 122433, University of Bonn, Center for Development Research (ZEF).
- 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, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-23 (All new papers)
- NEP-HRM-2012-04-23 (Human Capital & Human Resource Management)
- NEP-LAB-2012-04-23 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stark, Oded & Fan, C. Simon, 2006.
"International Migration and "Educated Unemployment","
Discussion Papers, University of Bonn, Center for Development Research (ZEF)
7126, University of Bonn, Center for Development Research (ZEF).
- Fan, C. Simon & Stark, Oded, 2007. "International migration and "educated unemployment"," Journal of Development Economics, Elsevier, Elsevier, vol. 83(1), pages 76-87, May.
- Kwok, Viem & Leland, Hayne, 1982. "An Economic Model of the Brain Drain," American Economic Review, American Economic Association, American Economic Association, vol. 72(1), pages 91-100, March.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997.
"A brain gain with a brain drain,"
Economics Letters, Elsevier,
Elsevier, vol. 55(2), pages 227-234, August.
- Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998.
"Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?,"
Departmental Working Papers, Chinese University of Hong Kong, Department of Economics
_096, Chinese University of Hong Kong, Department of Economics.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, Elsevier, vol. 60(3), pages 363-367, September.
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"Inducing human capital formation: migration as a substitute for subsidies,"
Journal of Public Economics, Elsevier,
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- Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series, Institute for Advanced Studies 100, Institute for Advanced Studies.
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- Koska, Onur A. & Saygin, Perihan Özge & Çağatay, Selim & Artal-Tur, Andrés, 2013. "International migration, remittances, and the human capital formation of Egyptian children," International Review of Economics & Finance, Elsevier, Elsevier, vol. 28(C), pages 38-50.
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