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Migration and the diffusion of knowledge in a globalized economy

  • Stefan Groot

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    This paper considers diversity of the knowledge of expats as a complementary dimension of human capital that may generate spillovers. Such, often intangible, knowledge about foreign markets, management skills, and other complementary information may enhance the productivity of these expats, or the people who interact with them. However, due to a lack of knowledge about local culture and language, productivity may also decline. We explore an extensive set of microdata from Statistics Netherlands, and use an augmented Mincer approach to simultaneously identify the private and social returns to the presence of foreign knowledge workers. Private returns are found to be negative and statistically significant, while no evidence for – either negative or positive – social returns is found.

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01338.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1338.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa11p1338
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    1. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
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    5. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "Cities and Cultures," Working Papers 2004.92, Fondazione Eni Enrico Mattei.
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    8. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
    9. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2008. "Agglomeration Externalities, Innovation and Regional Growth: Theoretical Perspectives and Meta-Analysis," Working Papers in Economics 08/01, University of Waikato, Department of Economics.
    10. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
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    15. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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