International migration and "educated unemployment"
This paper provides a novel explanation of "educated unemployment," which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that "educated unemployment" is caused by the perspective of international migration, that is, by the possibility of a "brain drain." In addition, the analysis shows that a developing country may end up with more educated workers despite the brain drain and educated unemployment.
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Departmental Working Papers
_096, Chinese University of Hong Kong, Department of Economics.
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97-9, Massachusetts Institute of Technology (MIT), Department of Economics.
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