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Does migration stimulate human capital investment Theory and evidence

Author

Listed:
  • Brücker, Herbert
  • Defoort, Cécily
  • Gruen, Carola

Abstract

This paper investigates whether international migration stimulates additional investment in human capital in host countries. First, a simple theoretical model is developed, showing that if migration were allowed, additional human capital investment is possible. Whether human capital endowment in host countries will rise or fall, is an open problem. This result differs from traditional theories of brain drain which typically assume an exogenous level of human capital investment. The empirical part of the paper employs a newly collated data set. First results show that the share of the population investing in education increases with the share of highly qualified emigrants.

Suggested Citation

  • Brücker, Herbert & Defoort, Cécily & Gruen, Carola, 2008. "Does migration stimulate human capital investment Theory and evidence," Proceedings of the German Development Economics Conference, Zurich 2008 15, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec08:15
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    More about this item

    Keywords

    International migration; Human capital; Labour market; Panel data econometrics;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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