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Wage Effects of High-Skilled Migration: International Evidence

  • Volker Grossmann
  • David Stadelmann

The international migration of high-skilled workers may trigger productivity effects at the macro level such that the wage rate of skilled workers increases in host countries and decreases in source countries. We exploit data on international bilateral migration flows and provide evidence consistent with this theoretical hypothesis. We propose various instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and the wages of skilled workers between pairs of source and destination countries. These strategies aim to address the endogeneity problem that arises when international wage differences affect migration decisions. Copyright 2013, Oxford University Press.

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Article provided by World Bank Group in its journal The World Bank Economic Review.

Volume (Year): 27 (2013)
Issue (Month): 2 ()
Pages: 297-319

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Handle: RePEc:oup:wbecrv:v:27:y:2013:i:2:p:297-319
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