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Education, unemployment and migration

Author

Listed:
  • Wolfgang Eggert

    () (University of Paderborn & CESifo)

  • Tim Krieger

    () (University of Paderborn)

  • Volker Meier

    () (Ifo Institute for Economic Research, University of Munich & CESifo)

Abstract

This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skilled-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

Suggested Citation

  • Wolfgang Eggert & Tim Krieger & Volker Meier, 2009. "Education, unemployment and migration," Working Papers CIE 7, Paderborn University, CIE Center for International Economics.
  • Handle: RePEc:pdn:ciepap:7
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Camilo Alberto Cárdenas Hurtado & María Alejandra Hernández Montes & Jhon Edwar Torres Gorron, 2015. "A Statistical Analysis of Heterogeneity on Labour Markets and Unemployment Rates in Colombia," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, August.
    2. Dreher, Axel & Krieger, Tim & Meierrieks, Daniel, 2011. "Hit and (they will) run: The impact of terrorism on migration," Economics Letters, Elsevier, vol. 113(1), pages 42-46, October.
    3. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," Working Papers CIE 27, Paderborn University, CIE Center for International Economics.
    4. Alexander Haupt & Tim Krieger & Thomas Lange, 2016. "Competition for the international pool of talent," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1113-1154, October.
    5. Dragomirescu-Gaina, Catalin & Weber, Anke, 2013. "Forecasting the Europe 2020 headline target on education and training: A panel data approach," MPRA Paper 68664, University Library of Munich, Germany.
    6. Tina Dulam & Philip Hans Franses, 2015. "Emigration, wage differentials and brain drain: the case of Suriname," Applied Economics, Taylor & Francis Journals, vol. 47(23), pages 2339-2347, May.
    7. Camilo Alberto Cárdenas Hurtado & María Alejandra Hernández Montes & Jhon Edwar Torres Gorron, 2014. "An Exploratory Analysis of Heterogeneity on Regional Labour Markets and Unemployment Rates in Colombia: An MFACT approach," Borradores de Economia 802, Banco de la Republica de Colombia.
    8. Gega Todua, 2017. "Financing Education Abroad: A Developing Country Perspective," CERGE-EI Working Papers wp608, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    9. Alexander Haupt & Silke Uebelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economic Research Papers 2014-020, Friedrich-Schiller-University Jena.
    10. Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 560-570, August.
    11. Dulam, T.W. & Franses, Ph.H.B.F., 2014. "Microeconomic determinants of skilled migration: The case of Suriname," Econometric Institute Research Papers EI 2014-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    12. Volker Meier, 2010. "Programmauswahl in der aktiven Arbeitsmarktpolitik durch Selbstbeteiligung?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(17), pages 27-29, September.

    More about this item

    Keywords

    Brain drain; Brain gain; Education; Unemployment; Interregional migration; Externalities;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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