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The Impact of Migration on Origin Countries: A Numerical Analysis

In: Computational Methods in Economic Dynamics

Author

Listed:
  • Luca Marchiori

    (Université du Luxembourg)

  • Patrice Pieretti

    (Université du Luxembourg)

  • Benteng Zou

    (Université du Luxembourg)

Abstract

The focus of this article is on the impact of high-skilled emigration on fertility and human capital of a sending country. The model shows that an increase in the intensity of the brain drain induces parents to provide higher education to a larger number of their children and to rear less low-skilled children. The impact on fertility and on human capital formation, however, remains unclear. This is why we run numerical simulations by calibrating our model to a developing country like the Philippines. Since, within our dynamic framework, parents’ decisions depend on the expected earnings of their children, we employ a simulation method that is able to solve models with forward-looking variables. The calibration results show in particular that increased brain drain lowers fertility and boosts long-run human capital formation in the sending country.

Suggested Citation

  • Luca Marchiori & Patrice Pieretti & Benteng Zou, 2011. "The Impact of Migration on Origin Countries: A Numerical Analysis," Dynamic Modeling and Econometrics in Economics and Finance, in: Herbert Dawid & Willi Semmler (ed.), Computational Methods in Economic Dynamics, pages 183-195, Springer.
    • Handle: RePEc:spr:dymchp:978-3-642-16943-4_9
    DOI: 10.1007/978-3-642-16943-4_9
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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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