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Highly Skilled International Migration, STEM Workers, and Innovation

Author

Listed:
  • Anelí Bongers

    (Department of Economics, University of Málaga)

  • Carmen Díaz-Roldán

    (Department of Economics, University of Castilla-La Mancha)

  • José L. Torres

    (Department of Economics, University of Málaga)

Abstract

This paper studies the implications of highly skilled labor international migration in a two-country Dynamic Stochastic General Equilibrium model. The model considers three types of workers: STEM workers, non-STEM college educated workers, and non-college educated workers. Only high skilled workers can move internationally from the relative low productivity (sending) country to the high productivity (host) country. Aggregate productivity in each economy is a function of innovations, which can be produced only by STEM workers. The model predicts i) the existence of a wage premium of STEM workers relative to non-STEM college educated workers, ii) this wage premium is higher in the destination country and increases with positive technological shocks, iii) a reduction in migration costs increases output, wages and total labor in the destination country, with opposite e¤ects in the country of origin, and iv) high skilled immigrants reduce skilled native labor and do not a¤ect unskilled labor.

Suggested Citation

  • Anelí Bongers & Carmen Díaz-Roldán & José L. Torres, 2018. "Highly Skilled International Migration, STEM Workers, and Innovation," Working Papers 2018-08, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
  • Handle: RePEc:mal:wpaper:2018-8
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    References listed on IDEAS

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    More about this item

    Keywords

    STEM workers; Migration; Dynamic Stochastic General Equilibrium models; Innovation;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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