Two-way Migration Between Similar Countries
We develop a model to explain two-way migration of high-skilled individuals between countries that are similar in their economic characteristics. High-skilled migration is explained by a combination of two features: In both countries workers’ abilities are private knowledge, and the production technology gives incentives to firms for hiring workers of similar ability. In the presence on migration cost, high-skilled workers self-select into the group of migrants, thereby ensuring they are hired together with other high-skilled migrants. The laissez-faire equilibrium features too much migration, explained by a negative migration externality, and as a result all individuals are worse off than in autarky. We also show that for sufficiently low levels of migration cost the optimal level of migration is strictly positive. In extensions to our basic model, we consider the presence of an internationally immobile factor and find that in this case the possibility of aggregate gains from migration in the laissez-faire equilibrium emerges. We also show that our basic results are robust with respect to small differences in countries’ technologies.
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- Giannetti, M., 2000.
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- Mariassunta Giannetti, 2000. "On the Mechanics of Migration Decisions; Skill Complementarities and Endogenous Price Differentials," Temi di discussione (Economic working papers) 366, Bank of Italy, Economic Research and International Relations Area.
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Staff General Research Papers
11931, Iowa State University, Department of Economics.
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- Fredrik Andersson & Mónica García-Pérez & John Haltiwanger & Kristin McCue & Seth Sanders, 2014.
"Workplace Concentration of Immigrants,"
Springer, vol. 51(6), pages 2281-2306, December.
- Fredrik Andersson & Monica Garcia-Perez & John Haltiwanger & Kristin McCue & Seth Sanders, 2010. "Workplace Concentration of Immigrants," Working Papers 10-39r, Center for Economic Studies, U.S. Census Bureau, revised Nov 2011.
- Monica I. Garcia-Perez & Fredrik Andersson & John Haltiwanger & Fredrik Kristin McCue & Seth Sanders, 2011. "Workplace Concentration of Immigrants," Working Papers 2011-20, Saint Cloud State University, Department of Economics.
- Fredrik Andersson & Mónica García-Pérez & John C. Haltiwanger & Kristin McCue & Seth Sanders, 2010. "Workplace Concentration of Immigrants," NBER Working Papers 16544, National Bureau of Economic Research, Inc.
- repec:tpr:qjecon:v:108:y:1993:i:3:p:551-75 is not listed on IDEAS
- Docquier,Frederic & Marfouk,Abdeslam, 2004. "Measuring the international mobility of skilled workers (1990-2000) : release 1.0," Policy Research Working Paper Series 3381, The World Bank.
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