IDEAS home Printed from https://ideas.repec.org/p/ags/ubzefd/279853.html
   My bibliography  Save this paper

Externalities, Human Capital Formation, and Corrective Migration Policy

Author

Listed:
  • Stark, Oded
  • Wang, Yong

Abstract

When productivity is fostered by an individual’s own human capital as well as by the economy-wide average level of human capital, individuals under-invest in human capital. A strictly positive probability of migration to a richer country raises both the level of human capital formed by optimizing individuals in the home country and the average level of human capital of non-migrants in the country. Conditions are provided under which the welfare of all workers i higher with migration than in its absence. A well-controlled, restrictive migration policy can enhance welfare and nudge the economy toward the social optimum.

Suggested Citation

  • Stark, Oded & Wang, Yong, 1999. "Externalities, Human Capital Formation, and Corrective Migration Policy," Discussion Papers 279853, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:279853
    DOI: 10.22004/ag.econ.279853
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/279853/files/zef_dp11-99.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.279853?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    2. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
    3. Chau, Nancy H. & Stark, Oded, 1999. "Human-Capital Formation, Asymmetric Information, and the Dynamics of International Migration," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 333-370.
    4. Stark, Oded, 1995. "Return and Dynamics: The Path of Labor Migration when Workers Differ in their Skills and Information Is Asymmetric," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 55-71.
    5. Razin,Assaf & Sadka,Efraim (ed.), 1999. "The Economics of Globalization," Cambridge Books, Cambridge University Press, number 9780521622684, December.
    6. Stark, Oded, 1995. " Return and Dynamics: The Path of Labor Migration When Workers Differ in Their Skills and Information Is Asymmetric," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(1), pages 55-71, March.
    7. Nasr, Mamdouh, 1999. "Assessing Desertification and Water Harvesting in the Middle East and North Africa: Policy Implications," Discussion Papers 279852, University of Bonn, Center for Development Research (ZEF).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    2. Chaitali Sinha, 2017. "International Migration and Welfare Implications," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(2), pages 209-229, December.
    3. Mayr Karin & Peri Giovanni, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-52, November.
    4. Khraiche, Maroula & Boudreau, James, 2020. "Can lower remittance costs improve human capital accumulation in Africa?," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1000-1021.
    5. Dequiedt, Vianney & Zenou, Yves, 2013. "International migration, imperfect information, and brain drain," Journal of Development Economics, Elsevier, vol. 102(C), pages 62-78.
    6. Hera Susanti & Arie Damayanti, 2015. "Determinants of Internal Migration in Indonesia," Working Papers in Economics and Business 201505, Faculty of Economics and Business, University of Indonesia, revised Oct 2015.
    7. Ozan Hatipoglu & Serhan Sadikoglu, 2013. "No Brain Gain without Brain Drain? Dynamics of Return Migration and Human Capital Formation under Asymmetric Information," Working Papers 2013/09, Bogazici University, Department of Economics.
    8. Chaudhuri, Sarbajit & Ghosh, Arnab & Banerjee, Dibyendu, 2018. "Can public subsidy on education necessarily improve wage inequality?," International Review of Economics & Finance, Elsevier, vol. 54(C), pages 165-177.
    9. Luca Marchiori & I-Ling Shen & Frédéric Docquier, 2013. "Brain Drain In Globalization: A General Equilibrium Analysis From The Sending Countries' Perspective," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1582-1602, April.
    10. Abdulloev, Ilhom, 2020. "Changes in the Forsaken Schooling and Migration Relationship in Tajikistan," IZA Discussion Papers 13435, Institute of Labor Economics (IZA).
    11. Bertoli, Simone & Brücker, Herbert, 2011. "Selective immigration policies, migrants' education and welfare at origin," Economics Letters, Elsevier, vol. 113(1), pages 19-22, October.
    12. Stark, Oded & Dorn, Agnieszka, 2013. "International migration, human capital formation, and saving," Economics Letters, Elsevier, vol. 118(3), pages 411-414.
    13. Frédéric Docquier & Elisabetta Lodigiani, 2010. "Skilled Migration and Business Networks," Open Economies Review, Springer, vol. 21(4), pages 565-588, September.
    14. Ira N. Gang & Thomas Bauer, 2000. "Return Migrants From Egypt: How Long Did They Stay Abroad?," Departmental Working Papers 199811, Rutgers University, Department of Economics.
    15. Abdulloev Ilhom & Epstein Gil S. & Gang Ira N., 2020. "Migration and Forsaken Schooling in Kyrgyzstan, Tajikistan, and Uzbekistan," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-27, January.
    16. Kangasniemi, Mari & Winters, L. Alan & Commander, Simon, 2007. "Is the medical brain drain beneficial? Evidence from overseas doctors in the UK," Social Science & Medicine, Elsevier, vol. 65(5), pages 915-923, September.
    17. Oded Stark, 1996. "Frontier Issues in International Migration," International Regional Science Review, , vol. 19(1-2), pages 147-177, April.
    18. Nil Demet Gungor & Aysit Tansel, 2009. "Brain Drain from Turkey: Return Intentions of Skilled Migrants," ERC Working Papers 0902, ERC - Economic Research Center, Middle East Technical University, revised Oct 2009.
    19. Bénassy, Jean-Pascal & Brezis, Elise S., 2013. "Brain drain and development traps," Journal of Development Economics, Elsevier, vol. 102(C), pages 15-22.
    20. Bellemare, C., 2003. "Economic Assimilation and Outmigration of Immigrants in West-Germany," Discussion Paper 2003-65, Tilburg University, Center for Economic Research.

    More about this item

    Keywords

    Institutional and Behavioral Economics; Labor and Human Capital;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ubzefd:279853. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/zefbnde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/zefbnde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.