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Wage effects of high-skilled migration : international evidence

  • Grossmann, Volker
  • Stadelmann, David

The international migration of high-skilled workers may trigger productivity effects at the macro level such that the wage rate of skilled workers increases in host countries and decrease in source countries. The authors exploit data on international bilateral migration flows and provide evidence consistent with this theoretical hypothesis. They propose various instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and the wages of skilled workers between pairs of source and destination countries. These strategies aim to address the endogeneity problem that arises when international wage differences affect migration decisions.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6317.

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Date of creation: 01 Jan 2013
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Handle: RePEc:wbk:wbrwps:6317
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  8. Michel Beine & Frédéric Docquier & Çaglar Özden, 2009. "Diasporas," CREA Discussion Paper Series 09-15, Center for Research in Economic Analysis, University of Luxembourg.
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  10. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
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  20. Silvio Hong Tiing Tai & Tobias Müller, 2014. "Individual Attitudes Towards Migration: A Reexamination Of The Evidence," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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