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Wage effects of high-skilled migration : international evidence

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  • Grossmann, Volker
  • Stadelmann, David

Abstract

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.

Suggested Citation

  • Grossmann, Volker & Stadelmann, David, 2013. "Wage effects of high-skilled migration : international evidence," Policy Research Working Paper Series 6317, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6317
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79956, Verein für Socialpolitik / German Economic Association.
    2. Volker Grossmann, 2016. "How immigration affects investment and productivity in host and home countries," IZA World of Labor, Institute for the Study of Labor (IZA), pages 292-292, September.
    3. Volker Grossmann & Andreas Schäfer & Thomas Steger, 2013. "Migration, Capital Formation, and House Prices," CESifo Working Paper Series 4146, CESifo Group Munich.
    4. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    5. Manciu Venera Cristina & Demyen Suzana, 2014. "Is Wage A Managerial Motivational Tool Or A Migration Determinant Among Young People?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 33-40, August.
    6. Alexander Haupt & Silke Uebelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economic Research Papers 2014-020, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    Population Policies; Labor Markets; International Migration; Labor Policies; Human Migrations&Resettlements;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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