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Wage Effects of High-Skilled Migration: International Evidence

Author

Listed:
  • Volker Grossmann
  • David Stadelmann

Abstract

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.

Suggested Citation

  • Volker Grossmann & David Stadelmann, 2013. "Wage Effects of High-Skilled Migration: International Evidence," The World Bank Economic Review, World Bank, vol. 27(2), pages 297-319.
  • Handle: RePEc:oup:wbecrv:v:27:y:2013:i:2:p:297-319
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    File URL: http://hdl.handle.net/10.1093/wber/lht002
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    Cited by:

    1. Volker Grossmann, 2021. "How immigration affects investment and productivity in host and home countries," World of Labour, LISER, pages 292-292, October.
    2. Volker Grossmann & Andreas Schäfer & Thomas Steger, 2013. "Migration, Capital Formation, and House Prices," CESifo Working Paper Series 4146, CESifo.
    3. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," FSES Working Papers 442, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    4. Liu, Mengqiao & Jia, Ruixin & Zhang, Yu Yvette, 2025. "Curbing brain drain: Incentive programs and economic fundamentals in shaping college students’ job location decisions," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 38-56.
    5. Swapnanil SENGUPTA & Rareș Petru MIHALACHE, 2021. "How do immigration impact unemployment and economic prosperity? An extensive investigation from the OECD nations," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(626), S), pages 5-22, Spring.
    6. Alexander Haupt & Silke Übelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economics Research Papers 2014-020, Friedrich-Schiller-University Jena.
    7. repec:dau:papers:123456789/14987 is not listed on IDEAS
    8. Laura A. Khassenova & Altyn M. Yessirkepova & Marat K. Seidakhmetov & Zarema A. Bigeldiyeva & Dinmukhamed S. Zhakipbekov, 2023. "The Multidimensional Logistic Model According to the Forecast of Employment of Graduates of Institutions of Higher Education of the Republic of Kazakhstan," Economies, MDPI, vol. 11(6), pages 1-17, June.
    9. Abegaz, Melaku & Lahiri, Sajal & Morshed, A.K.M. Mahbub, 2020. "Does the presence of international students improve domestic graduations in the US?," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 95-108.
    10. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2019. "Immigration and unemployment in Europe: does the core-periphery dualism matter?," GLO Discussion Paper Series 310, Global Labor Organization (GLO).
    11. Yvonne Giesing & Nadzeya Laurentsyeva, 2017. "Firms Left Behind: Emigration and Firm Productivity," CESifo Working Paper Series 6815, CESifo.
    12. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    13. Francisco Javier Escribá-Pérez & María José Murgui-García, 2018. "Technology catching-up and regulation in European regions," Journal of Productivity Analysis, Springer, vol. 49(1), pages 95-109, February.
    14. Manciu Venera Cristina & Demyen Suzana, 2014. "Is Wage A Managerial Motivational Tool Or A Migration Determinant Among Young People?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 33-40, August.
    15. Eva Spring & Volker Grossmann, 2016. "Does bilateral trust across countries really affect international trade and factor mobility?," Empirical Economics, Springer, vol. 50(1), pages 103-136, February.
    16. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2020. "The effect of immigration on unemployment in Europe: Does the core-periphery dualism matter?," Economic Modelling, Elsevier, vol. 84(C), pages 249-258.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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