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Endogenous Skill Formation and the Source Country Effects of International Labor Market Integration

Author

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  • Hartmut Egger
  • Gabriel Felbermayr

    ()

Abstract

With endogenous skills and given technology, labor market integration necessarily lowers welfare of the left-behind in a poor sending country, even if all agents face identical emigration probabilities. This is in sharp contrast to the case of exogenous skill supply.

Suggested Citation

  • Hartmut Egger & Gabriel Felbermayr, 2007. "Endogenous Skill Formation and the Source Country Effects of International Labor Market Integration," CESifo Working Paper Series 2018, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2018
    as

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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp2018.pdf
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    References listed on IDEAS

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    1. Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, vol. 118(528), pages 631-652, April.
    2. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-978, December.
    3. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    4. 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.
    5. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    6. Eckhard Janeba, 2003. "Does Trade Increase Inequality when Skills are Endogenous?," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 885-898, November.
    7. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
    8. Hartmut Egger & Josef Falkinger & Volker Grossmann, 2012. "Brain Drain, Fiscal Competition, and Public Education Expenditure," Review of International Economics, Wiley Blackwell, vol. 20(1), pages 81-94, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:wfo:wstudy:35641 is not listed on IDEAS
    2. Egger, Hartmut & Felbermayr, Gabriel, 2009. "Endogenous skill formation and the source country effects of emigration," Munich Reprints in Economics 20521, University of Munich, Department of Economics.
    3. Bertoli Simone & Brücker Herbert, 2011. "Extending the Case for a Beneficial Brain Drain," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(4), pages 466-478, August.

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