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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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    Cited by:

    1. Abegaz, Melaku & Lahiri, Sajal & Morshed, A.K.M. Mahbub, 2020. "Does the presence of international students improve domestic graduations in the US?," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 95-108.
    2. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2019. "Immigration and unemployment in Europe: does the core-periphery dualism matter?," GLO Discussion Paper Series 310, Global Labor Organization (GLO).
    3. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79956, Verein für Socialpolitik / German Economic Association.
    4. Volker Grossmann, 2021. "How immigration affects investment and productivity in host and home countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 292-292, October.
    5. Volker Grossmann & Andreas Schäfer & Thomas Steger, 2013. "Migration, Capital Formation, and House Prices," CESifo Working Paper Series 4146, CESifo.
    6. Yvonne Giesing & Nadzeya Laurentsyeva, 2017. "Firms Left Behind: Emigration and Firm Productivity," CESifo Working Paper Series 6815, CESifo.
    7. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    8. Swapnanil SENGUPTA & Rareș Petru MIHALACHE, 2021. "How do immigration impact unemployment and economic prosperity? An extensive investigation from the OECD nations," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(626), S), pages 5-22, Spring.
    9. Francisco Javier Escribá-Pérez & María José Murgui-García, 2018. "Technology catching-up and regulation in European regions," Journal of Productivity Analysis, Springer, vol. 49(1), pages 95-109, February.
    10. 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.
    11. Alexander Haupt & Silke Übelmesser, 2014. "Labour Market Integration, Human Capital Formation, and Mobility," Jena Economics Research Papers 2014-020, Friedrich-Schiller-University Jena.
    12. Eva Spring & Volker Grossmann, 2016. "Does bilateral trust across countries really affect international trade and factor mobility?," Empirical Economics, Springer, vol. 50(1), pages 103-136, February.
    13. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2020. "The effect of immigration on unemployment in Europe: Does the core-periphery dualism matter?," Economic Modelling, Elsevier, vol. 84(C), pages 249-258.
    14. repec:dau:papers:123456789/14987 is not listed on IDEAS
    15. Laura A. Khassenova & Altyn M. Yessirkepova & Marat K. Seidakhmetov & Zarema A. Bigeldiyeva & Dinmukhamed S. Zhakipbekov, 2023. "The Multidimensional Logistic Model According to the Forecast of Employment of Graduates of Institutions of Higher Education of the Republic of Kazakhstan," Economies, MDPI, vol. 11(6), pages 1-17, June.

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    More about this item

    Keywords

    Population Policies; Labor Markets; International Migration; Labor Policies; Human Migrations&Resettlements;
    All these keywords.

    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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