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The Influence of Migration on Human Capital Development

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  • Salvador Contreras

Abstract

This paper develops a general equilibrium overlapping generation model of migrant and domestic households that reside in one of two countries, one rich and one poor. The model is used to analyze the impact of migration on human capital development. The model shows that migration, with remittances to non-migrant poor households, has a positive impact on non-migrant households' human capital accumulation ('brain gain'). The model shows that migration (or the option of) induces human capital investment. However, it is shown that remittances have a negative impact on the growth that migrant households enjoy in the rich country. In addition, strong links to source country reduce the educational attainment of second-generation migrant households.

Suggested Citation

  • Salvador Contreras, 2013. "The Influence of Migration on Human Capital Development," International Economic Journal, Taylor & Francis Journals, vol. 27(3), pages 365-384, September.
  • Handle: RePEc:taf:intecj:v:27:y:2013:i:3:p:365-384
    DOI: 10.1080/10168737.2012.659277
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    References listed on IDEAS

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    Cited by:

    1. José Martínez, 2013. "Mexican Migrants to the United States: an Alternative Methodology," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 1-30, May.

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