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Head-content or Headcount? Short-term Skilled Labour Movements as a Source of Growth

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  • Tani, Massimiliano

    () (University of New South Wales)

Abstract

This paper contributes a theoretical model to study the effects of short-term movements of skilled labour on a country's economic growth. As traditional migration models emphasise the long-term effects of migration on factor endowments, they typically omit the analysis of gross labour flows. Gross flows however capture the volume of interactions and knowledge exchanges between workers living in different countries, which in turn affect the stock of knowledge available to their places of residences, and hence their ability to innovate and grow. A simulation based on available US, British and Australian data on international business visits reveals that short-term skilled labour movements have a positive and not insignificant effect on growth.

Suggested Citation

  • Tani, Massimiliano, 2006. "Head-content or Headcount? Short-term Skilled Labour Movements as a Source of Growth," IZA Discussion Papers 1934, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1934
    as

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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    6. Slaughter, Matthew J., 2000. "Production transfer within multinational enterprises and American wages," Journal of International Economics, Elsevier, vol. 50(2), pages 449-472, April.
    7. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    8. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
    9. Dustmann, Christian, 2000. "Temporary Migration and Economic Assimilation," IZA Discussion Papers 186, Institute for the Study of Labor (IZA).
    10. Adrian Wood, 2002. "Globalization and wage inequalities: A synthesis of three theories," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 54-82, March.
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    More about this item

    Keywords

    economic growth; international migration; temporary labour movements; skilled labour;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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