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Immigration and the Source Country

In: The Economics of Immigration

Author

Listed:
  • Örn B. Bodvarsson

    (St. Cloud State University)

  • Hendrik Berg

    (University of Nebraska)

Abstract

This chapter examines the effect of migration on the source country. The standard labor supply and demand model shows that immigration causes the destination country to gain welfare while the source country loses welfare. There are more complex outcomes, however. This chapter first focuses on income remittances. The second half of this chapter covers the brain drain. The policy debate has been complicated by the lack of consensus on the actual costs and benefits of the brain drain for the source country. Offsetting the obvious negative consequences, the brain drain may also increase remittances back to the source country, and overseas opportunities provide incentives for all people in the source country to acquire more education.

Suggested Citation

  • Örn B. Bodvarsson & Hendrik Berg, 2009. "Immigration and the Source Country," Springer Books, in: The Economics of Immigration, chapter 0, pages 183-219, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-77796-0_8
    DOI: 10.1007/978-3-540-77796-0_8
    as

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