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International Migration, Skill Acquisition and Matching Frictions

Author

Listed:
  • Hung-Ju Chen

    (National Taiwan University)

  • Xiangbo Liu

    (Renmin University of China)

Abstract

This paper investigates the impacts of the prospect of work abroad on a sending countryÂ’s labor market outcomes in a search and matching environment with endogenous skill acquisition. Our model allows firms to adjust their demand of labor to changes in the prospect of work abroad. We show that an increase in the probability of work abroad for skilled (unskilled) workers discourages job entry in the skilled (unskilled) labor market, and makes it more difficult for skilled (unskilled) workers to find employment. Therefore, such change may not always result in an increase in the fraction of skilled workers, depending on the value of work abroad.

Suggested Citation

  • Hung-Ju Chen & Xiangbo Liu, 2015. "International Migration, Skill Acquisition and Matching Frictions," Economics Bulletin, AccessEcon, vol. 35(3), pages 1469-1476.
  • Handle: RePEc:ebl:ecbull:eb-15-00295
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I3-P147.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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