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Wage Effects of High-skilled Migration: International Evidence

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  • Grossmann, Volker
  • Stadelmann, David

Abstract

This paper argues that international migration of high-skilled workers triggers productivity effects at the macro level such that the wage rate of skilled workers may well rise in host countries and decline in source countries. We exploit a recent data set on international bilateral migration flows and provide evidence which is consistent with this hypothesis. In order to identify the causal effect of migration on wages, we propose different instrumentation strategies which address the endogeneity problem arising from the fact that international wage differences affect migration decisions.

Suggested Citation

  • Grossmann, Volker & Stadelmann, David, 2010. "Wage Effects of High-skilled Migration: International Evidence," FSES Working Papers 415, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
  • Handle: RePEc:fri:fribow:fribow00415
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    Cited by:

    1. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2019. "Immigration and unemployment in Europe: does the core-periphery dualism matter?," GLO Discussion Paper Series 310, Global Labor Organization (GLO).
    2. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79956, Verein für Socialpolitik / German Economic Association.
    3. Volker Grossmann, 2016. "How immigration affects investment and productivity in host and home countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 292-292, September.
    4. Volker Grossmann & Andreas Schäfer & Thomas Steger, 2013. "Migration, Capital Formation, and House Prices," CESifo Working Paper Series 4146, CESifo.
    5. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2020. "The effect of immigration on unemployment in Europe: Does the core-periphery dualism matter?," Economic Modelling, Elsevier, vol. 84(C), pages 249-258.
    6. Yvonne Giesing & Nadzeya Laurentsyeva, 2017. "Firms Left Behind: Emigration and Firm Productivity," CESifo Working Paper Series 6815, CESifo.
    7. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    8. Swapnanil SENGUPTA & Rareș Petru MIHALACHE, 2021. "How do immigration impact unemployment and economic prosperity? An extensive investigation from the OECD nations," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(626), S), pages 5-22, Spring.
    9. Francisco Javier Escribá-Pérez & María José Murgui-García, 2018. "Technology catching-up and regulation in European regions," Journal of Productivity Analysis, Springer, vol. 49(1), pages 95-109, February.
    10. Manciu Venera Cristina & Demyen Suzana, 2014. "Is Wage A Managerial Motivational Tool Or A Migration Determinant Among Young People?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 33-40, August.
    11. Alexander Haupt & Silke Uebelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economic Research Papers 2014-020, Friedrich-Schiller-University Jena.
    12. Eva Spring & Volker Grossmann, 2016. "Does bilateral trust across countries really affect international trade and factor mobility?," Empirical Economics, Springer, vol. 50(1), pages 103-136, February.

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    More about this item

    Keywords

    High-skilled migration ; Wage effects ; Total factor productivity;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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