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Brain Drain, Remittances, and Fertility

Author

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  • Luca Marchiori
  • Patrice Pieretti
  • Benteng Zou

    () (CREA, University of Luxembourg)

Abstract

This paper analyzes the effects of skilled migration and remittances on fertility decisions at origin. We develop an overlapping generations model which accounts for endogenous fertility and education. Parents choose the number of children they want to raise and decide upon how many children obtain higher education. Only high skilled individuals migrate with a certain probability and remit to their parents. We find that an increase in the probability to emigrate leads both high and low skilled parents to send more children to obtain higher education. However the effect on the number of children is ambiguous. In a further analysis, we calibrate the model to match different characteristics of a developing economy. When the destination country relaxes the immigration restrictions, more high skilled individuals leave the origin country. The result is that, at origin, increased high skilled emigration reduces fertility and fosters human capital accumulation.

Suggested Citation

  • Luca Marchiori & Patrice Pieretti & Benteng Zou, 2008. "Brain Drain, Remittances, and Fertility," CREA Discussion Paper Series 08-04, Center for Research in Economic Analysis, University of Luxembourg.
  • Handle: RePEc:luc:wpaper:08-04
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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