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Migration of skilled workers: Policy interaction between host and source countries

  • Djajić, Slobodan
  • Michael, Michael S.
  • Vinogradova, Alexandra

We examine the interaction between policies of the host and source countries in the context of a model of skilled-worker migration. The host country aims to provide low-cost labor for its employers while also taking into consideration the fiscal burden of providing social services to immigrants. It optimizes by setting a time limit on the duration of a guest-worker's permit. The source country maximizes its net output by optimally choosing the amount of training provided to its citizens, some of whom may migrate. We solve for the Nash and cooperative-equilibrium values of the policy instruments.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 96 (2012)
Issue (Month): 11 ()
Pages: 1015-1024

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Handle: RePEc:eee:pubeco:v:96:y:2012:i:11:p:1015-1024
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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