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Ethnic discrimination and the migration of skilled labor

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  • Docquier, Frederic
  • Rapoport, Hillel

Abstract

We consider a small open developing economy, whose population is bifurcated into a majority and a minority group, the latter lacking political influence. Agents are heterogeneous in skills, and decide whether to invest in education when young and whether to migrate in their adulthood. Assuming a rent-extraction basis for discrimination, we first endogenize ethnic discrimination in the benchmark case of an economy closed to migration, and then explore how migration prospects affect ethnic inequality. Under the free migration assumption, we find the intuitive result that migration prospects have a protective effect on the minority. Moreover, the optimal discrimination rate (from the majority’s perspective) is shown to be such that there is no migration at equilibrium, unless the distribution of individuals’ skills exhibits marked asymmetries. Last, we find that immigration restrictions set by receiving countries have the paradoxical effect of creating migration flows which would otherwise have remained latent.
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  • Docquier, Frederic & Rapoport, Hillel, 2003. "Ethnic discrimination and the migration of skilled labor," Journal of Development Economics, Elsevier, vol. 70(1), pages 159-172, February.
  • Handle: RePEc:eee:deveco:v:70:y:2003:i:1:p:159-172
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    Cited by:

    1. Docquier, Frédéric & Lodigiani, Elisabetta & Rapoport, Hillel & Schiff, Maurice, 2016. "Emigration and democracy," Journal of Development Economics, Elsevier, vol. 120(C), pages 209-223.
    2. repec:taf:pocoec:v:28:y:2016:i:3:p:335-352 is not listed on IDEAS
    3. Frédéric Docquier & Hillel Rapoport, 2012. "Globalization, Brain Drain, and Development," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 681-730, September.
    4. Docquier, Frédéric & Lodigiani, Elisabetta & Rapoport, Hillel & Schiff, Maurice, 2016. "Emigration and democracy," Journal of Development Economics, Elsevier, vol. 120(C), pages 209-223.
    5. Aniruddha Mitra & James Bang & Phanindra Wunnava, 2014. "Financial liberalization and the selection of emigrants: a cross-national analysis," Empirical Economics, Springer, vol. 47(1), pages 199-226, August.
    6. Michel Beine & Khalid Sekkat, 2012. "Emigration and Origin Country’s Institutions: Does the Destination Country Matter?," Working Papers 675, Economic Research Forum, revised 2012.
    7. Docquier, Frédéric & Lodigiani, Elisabetta & Rapoport, Hillel & Schiff, Maurice, 2016. "Emigration and democracy," Journal of Development Economics, Elsevier, vol. 120(C), pages 209-223.
    8. Olena Ivus & Alireza Naghavi, 2014. "Migration, technology diffusion and institutional development at the origin," Chapters,in: International Handbook on Migration and Economic Development, chapter 10, pages 267-287 Edward Elgar Publishing.
    9. Michel Beine & Khalid Sekkat, 2013. "Skilled migration and the transfer of institutional norms," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-19, December.
    10. Driouchi, Ahmed & Zouag, Nada, 2010. "Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies," MPRA Paper 21799, University Library of Munich, Germany, revised 01 Apr 2010.
    11. Mariani, Fabio, 2007. "Migration as an antidote to rent-seeking?," Journal of Development Economics, Elsevier, vol. 84(2), pages 609-630, November.
    12. James T. Bang & Aniruddha Mitra, 2009. "Brain Drain and Institutions of Governance: Educational Attainment of Immigrants to the US 1988-2000," Middlebury College Working Paper Series 0919, Middlebury College, Department of Economics.
    13. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2010. "On the Robustness of Brain Gain Estimates," Annals of Economics and Statistics, GENES, issue 97-98, pages 143-165.
    14. Mitra, Aniruddha & Bang, James T. & Wunnava, Phanindra V., 2011. "Financial Liberalization and the Brain Drain: A Panel Data Analysis," IZA Discussion Papers 5953, Institute for the Study of Labor (IZA).
    15. Ariu, Andrea & Docquier, Frédéric & Squicciarini, Mara P., 2016. "Governance quality and net migration flows," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 238-248.
    16. Docquier, Frédéric & Lodigiani, Elisabetta & Rapoport, Hillel & Schiff, Maurice, 2016. "Emigration and democracy," Journal of Development Economics, Elsevier, vol. 120(C), pages 209-223.
    17. Ivlevs, Artjoms, 2016. "Remittances and Informal Work," IZA Discussion Papers 10196, Institute for the Study of Labor (IZA).
    18. Artjoms Ivlevs, 2013. "Minorities on the move? Assessing post-enlargement emigration intentions of Latvia’s Russian speaking minority," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 33-52, August.
    19. Driouchi, Ahmed & Kadiri, Molk, 2010. "Emigration of Skilled Labor under Risk Aversion: The Case of Medical Doctors from Middle Eastern and North African Economies," MPRA Paper 22810, University Library of Munich, Germany, revised 20 May 2010.
    20. Francesco Giffoni & Matteo Gomellini, 2015. "Brain gain in the age of mass migration," Quaderni di storia economica (Economic History Working Papers) 34, Bank of Italy, Economic Research and International Relations Area.
    21. Docquier, Frédéric, 2006. "Brain Drain and Inequality Across Nations," IZA Discussion Papers 2440, Institute for the Study of Labor (IZA).
    22. Elisabetta LODIGIANI, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009036, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    23. Bang, James T. & Mitra, Aniruddha, 2011. "Brain drain and institutions of governance: Educational attainment of immigrants to the US 1988-1998," Economic Systems, Elsevier, vol. 35(3), pages 335-354, September.
    24. Maurice Schiff & Frédéric Docquier, 2016. "Institutional Impact of Brain Drain, Human Capital, and Inequality: A Political Economy Analysis," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 53(1), pages 95-110, December.
    25. Wilson, John Douglas, 2011. "Brain-drain taxes for non-benevolent governments," Journal of Development Economics, Elsevier, vol. 95(1), pages 68-76, May.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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