The prospect of migration, sticky wages, and 'educated unemployment'
AbstractAn increase in the probability of work abroad, where the returns to schooling are higher than at home, induces more individuals in a developing country to acquire education, which leads to an increase in the supply of educated workers in the domestic labor market. Where there is a sticky wage-rate, the demand for labor at home will be constant. With a rising supply and constant demand, the rate of unemployment of educated workers in the domestic labor market will increase. Thus, the prospect of employment abroad causes involuntary 'educated unemployment' at home. A government that is concerned about 'educated unemployment' and might therefore be expected to encourage unemployed educated people to migrate will nevertheless, under certain conditions, elect to restrict the extent of the migration of educated individuals. --
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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 9.
Date of creation: 2011
Date of revision:
The prospect of migration; Sticky wages; 'Educated unemployment'; Government intervention;
Other versions of this item:
- Oded Stark & C. Simon Fan, 2011. "The Prospect of Migration, Sticky Wages, and “Educated Unemployment”," Review of International Economics, Wiley Blackwell, vol. 19(2), pages 277-287, 05.
- Stark, Oded & Fan, C. Simon, 2011. "The Prospect of Migration, Sticky Wages, and "Educated Unemployment"," Discussion Papers 98572, University of Bonn, Center for Development Research (ZEF).
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- 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-2011-05-24 (All new papers)
- NEP-HRM-2011-05-24 (Human Capital & Human Resource Management)
- NEP-LAB-2011-05-24 (Labour Economics)
- NEP-MAC-2011-05-24 (Macroeconomics)
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 & Wang, Yong, 2002.
"Inducing human capital formation: migration as a substitute for subsidies,"
Journal of Public Economics,
Elsevier, vol. 86(1), pages 29-46, October.
- Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
- de la Croix,David & Michel,Philippe, 2002.
"A Theory of Economic Growth,"
Cambridge University Press, number 9780521806428, April.
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- Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998.
"Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?,"
Departmental Working Papers
_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, vol. 60(3), pages 363-367, September.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human Capital Depletion, Human Capital Formation, and Migration. A Blessing in a "Curse"?," Economics Series 55, Institute for Advanced Studies.
- Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
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