IDEAS home Printed from https://ideas.repec.org/b/wfo/wstudy/25394.html
   My bibliography  Save this book

Human Capital, Spatial Mobility, and Lock-in – The Experience of Candidate Countries

Author

Listed:
  • Daniela Andren

    (University of Gothenburg)

  • Tamas Bartus

    (Hungarian Academy of Sciences, Institute of Economics)

  • Herbert Brücker

    (German Institute for Economic Research)

  • John Earle

    (Institute for the Study of Labor)

  • Jan Fidrmuc

    (Centre for European Integration Studies)

  • Mihails Hazans

    (University of Latvia)

  • Peter Huber
  • Gábor Kertesi

    (Hungarian Academy of Sciences, Institute of Economics)

  • Janos Köllö

    (Hungarian Academy of Sciences, Institute of Economics)

  • Dana Sapatoru

    (Upjohn Institute for Employment Research)

  • Ken Smith

    (Centre for European Integration Studies)

  • Parvati Trübswetter

    (Ludwig Maximilian University of Munich)

Abstract

Minimum wage increases in Hungary significantly increased labour costs, reduced employment in the small firm sector, and adversely influenced the job retention and job finding probabilities of low-wage workers. Discrimination on ethnic grounds hampers regional labour market adjustment in the candidate countries and may be considered an important element causing regional "lock-in". Returns to education increased dramatically during transition, which caused wage inequality to increase substantially. Furthermore low-skilled workers are the main group with the largest difficulties in adjusting to labour market shocks. The study shows that lacking regional mobility in the candidate countries is an important element in explaining the persistence of regional disparities in the new member states and candidate countries and that the consequences of the selectivity of migration with respect to education may have implications for the sending regions.

Suggested Citation

  • Daniela Andren & Tamas Bartus & Herbert Brücker & John Earle & Jan Fidrmuc & Mihails Hazans & Peter Huber & Gábor Kertesi & Janos Köllö & Dana Sapatoru & Ken Smith & Parvati Trübswetter, 2004. "Human Capital, Spatial Mobility, and Lock-in – The Experience of Candidate Countries," WIFO Studies, WIFO, number 25394, March.
    • Handle: RePEc:wfo:wstudy:25394
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/25394
    File Function: abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. K. Hamada & J. N. Bhagwati, 1975. "Domestic Distortions, Imperfect Information and the Brain Drain," Working papers 161, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Bender, Stefan & Haas, Anette & Klose, Christoph, 2000. "IAB Employment Subsample 1975-1995 Opportunities for Analysis Provided by the Anonymised Subsample," IZA Discussion Papers 117, Institute of Labor Economics (IZA).
    3. Wong, Kar-yiu & Yip, Chong Kee, 1999. "Education, economic growth, and brain drain," Journal of Economic Dynamics and Control, Elsevier, vol. 23(5-6), pages 699-726, April.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
    6. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
    7. Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute of Labor Economics (IZA).
    8. Hamada, Koichi & Bhagwati, Jagdish, 1975. "Domestic distortions, imperfect information and the brain drain," Journal of Development Economics, Elsevier, vol. 2(3), pages 265-279, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Marchiori & I-Ling Shen & Frédéric Docquier, 2013. "Brain Drain In Globalization: A General Equilibrium Analysis From The Sending Countries' Perspective," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1582-1602, April.
    2. Akira Shimada, 2013. "Wage Inequality and Human Capital Formation under Migration Possibilities," Australian Economic Papers, Wiley Blackwell, vol. 52(3-4), pages 190-201, December.
    3. Kangasniemi, Mari & Winters, L. Alan & Commander, Simon, 2007. "Is the medical brain drain beneficial? Evidence from overseas doctors in the UK," Social Science & Medicine, Elsevier, vol. 65(5), pages 915-923, September.
    4. Monteleone, Simona & Skonieczny, Giorgio & Torrisi, Benedetto, 2011. "Geographical analysis of the academic brain drain in Italy," DEMQ Working Paper Series 2011/1, University of Catania, Department of Economics and Quantitative Methods.
    5. Zhaobin Fan & Hui Li, 2019. "International Migration, Human Capital Composition And Middle-Income Traps," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 883-897, September.
    6. Wilson, John Douglas, 2011. "Brain-drain taxes for non-benevolent governments," Journal of Development Economics, Elsevier, vol. 95(1), pages 68-76, May.
    7. Zhaobin Fan & Sajid Anwar, 2021. "International migration of entrepreneurs and the emergence of economic development traps," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 6-22, February.
    8. Simona Monteleone, 2011. "Brain Drain and Economic Growth: A Critical Review," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    9. Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute of Labor Economics (IZA).
    10. Udo Kreickemeier & Jens Wrona, 2017. "Two-Way Migration between Similar Countries," The World Economy, Wiley Blackwell, vol. 40(1), pages 182-206, January.
    11. Hazari, Bharat R. & Sgro, Pasquale M., 2000. "Wage indexation, migration, and unemployment," International Review of Economics & Finance, Elsevier, vol. 9(3), pages 257-265, July.
    12. Ravi Kanbur & Hillel Rapoport, 2005. "Migration selectivity and the evolution of spatial inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 43-57, January.
    13. Slobodan DJADJIC & Frédéric DOCQUIER & Michael S. MICHAEL, 2019. "Optimal Education Policy and Human Capital Accumulation in the Context of Brain Drain," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 85(4), pages 271-303, December.
    14. Akira Shimada, 2021. "Does The Host Country Experience The Brain Drain Or The Brain Gain By Accepting Study Migrants?," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 15(1), pages 260-277.
    15. Destrée, Nicolas & Gente, Karine & Nourry, Carine, 2021. "Migration, remittances and accumulation of human capital with endogenous debt constraints," Mathematical Social Sciences, Elsevier, vol. 112(C), pages 38-60.
    16. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, May.
    17. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4363-4414, Elsevier.
    18. Jan-Jan Soon, 2008. "The determinants of international students' return intention," Working Papers 0806, University of Otago, Department of Economics, revised Jul 2008.
    19. Kuhn, Peter J. & McAusland, Carol, 2008. "Consumers and the Brain Drain: Product Design and the Gains from Emigration," IZA Discussion Papers 3602, Institute of Labor Economics (IZA).
    20. Di Maria, Corrado & Stryszowski, Piotr, 2009. "Migration, human capital accumulation and economic development," Journal of Development Economics, Elsevier, vol. 90(2), pages 306-313, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wstudy:25394. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.