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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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," FSES Working Papers 442, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    2. Grossmann, Volker & Schäfer, Andreas & Steger, Thomas M., 2013. "Migration, Capital Formation, and House Prices," IZA Discussion Papers 7225, Institute for the Study of Labor (IZA).
    3. 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.
    4. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    5. Alexander Haupt & Silke Uebelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economic Research Papers 2014-020, Friedrich-Schiller-University Jena.
    6. Volker Grossmann, 2016. "How immigration affects investment and productivity in host and home countries," IZA World of Labor, Institute for the Study of Labor (IZA), pages 292-292, September.

    More about this item

    Keywords

    High-skilled migration ; Wage effects ; Total factor productivity;

    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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