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Migration, Human Capital Formation and Growth: an Empirical Investigation

Author

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  • Corrado Di Maria
  • Emiliya Lazarova

Abstract

In this empirical investigation we study the effect of skilled emigration on human capital formation and growth in a sample of developing countries. We find that the migration rate exerts statistically significant effects on both the level and the skill composition of human capital. We also show that these migration-induced changes in the formation of human capital affect the growth performance of sending countries. The sign and the magnitude of these effects are shown to depend on the level of economic development of the sending country. Both the least and the most developed countries in our sample would suffer as a result of an increase in skilled migration, while countries at intermediate stages of development may benefit. Overall, the majority of sending countries are shown to lose from migration, and the losses that accrue to the least developed ones are larger than the benefits for the winners.

Suggested Citation

  • Corrado Di Maria & Emiliya Lazarova, 2010. "Migration, Human Capital Formation and Growth: an Empirical Investigation," Economics Working Papers 10-03, Queen's Management School, Queen's University Belfast.
    • Handle: RePEc:qub:wpaper:1003
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    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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