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Global competition for attracting talents and the world economy

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  • Frédéric DOCQUIER

    () (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and FNRS)

  • Joël MACHADO

    () (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper studies the effect of liberalizing the international mobility of college-educated workers on the world economy. First, we combine data on effective and desired migration to identify the net pool of foreign talents (NPFT) of selected high-income countries. So far, the EU15 has poorly benefited from its NPFT while the US has mobilized a large portion of it. Second, we use a micro-founded model to simulate the effects of skill-selective liberalization shocks. In our benchmark model, a worldwide liberalization induces larger long-run income gains for the EU15 (+8.8 percent) than for the US (+5.9 percent). However, less attractive EU countries such as Austria, Belgium, Germany, Greece, Luxembourg and the Netherlands benefit less than the US. In addition, liberalizing high-skilled migration decreases income per worker by 2.5 percent in developing countries. Overall, it increases efficiency (+6.2 percent in the worldwide average level of income per capita) and inequality (+1.2 percentage points in the Theil inequality index). Much greater effects can be obtained if total factor productivity varies with human capital.

Suggested Citation

  • Frédéric DOCQUIER & Joël MACHADO, 2014. "Global competition for attracting talents and the world economy," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2014020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2014020
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michal burzynski & Christoph Deuster & Frédéric Docquier, 2018. "The Geography of Talent: Development Implications and Long-Run Prospects," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2018002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Kahn, Michael & Gamedze, Thandi & Oghenetega, Joshua, 2019. "Mobility of sub-Saharan Africa doctoral graduates from South African universities—A tracer study," International Journal of Educational Development, Elsevier, vol. 68(C), pages 9-14.
    3. Frédéric DOCQUIER & Joël MACHADO, 2015. "Remittance and Migration Prospects for the Twenty-First Century," Working Papers P133, FERDI.
    4. Kris Hartley & Jun Jie Woo & Sun Kyo Chung, 2018. "Urban innovation policy in the postdevelopmental era: Lessons from Singapore and Seoul," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(3), pages 599-614, September.
    5. Frédéric Docquier & Joël Machado, 2017. "Income Disparities, Population and Migration Flows Over the Twenty First Century," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(2), pages 125-149, July.
    6. Michel Beine & Joël Machado & Ilse Ruyssen, 2019. "Do potential migrants internalise migrant rights in OECD host societies?," CREA Discussion Paper Series 19-07, Center for Research in Economic Analysis, University of Luxembourg.
    7. Burzynski, Michal & Deuster, Christoph & Docquier, Frédéric, 2020. "Geography of skills and global inequality," Journal of Development Economics, Elsevier, vol. 142(C).
    8. Miriam Palacios-Callender & Stephen A. Roberts, 2018. "Scientific collaboration of Cuban researchers working in Europe: understanding relations between origin and destination countries," Scientometrics, Springer;Akadémiai Kiadó, vol. 117(2), pages 745-769, November.
    9. Irina S. Zinovyeva & Yuri А. Kozenko & Kirill B. Gerasimov & Yulia I. Dubova & Margarita S. Irizepova, 2016. "Regional Innovation Development as a Feature of Competitiveness in the XXI Century," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 10(4), December.
    10. Michele Tuccio, 2017. "Determinants of Intra-ASEAN Migration," Asian Development Review, MIT Press, vol. 34(1), pages 144-166, March.

    More about this item

    Keywords

    brain drain; human capital; migration; growth; inequality;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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