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Does International Mobility of High-Skilled Workers Aggravate Between-Country Inequality ?

    23.04.2010

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Brain drain
Between-country wage differences
Public investment
Total factor productivity
English This paper analyzes the interaction of international migration of high-skilled labor and relative wage income between source and destination economies of expatriates. We develop an overlapping-generations model with increasing returns which suggests that international integration of the market for skilled labor aggravates between-country inequality by harming those which are source economies to begin with while benefiting host economies. The result is robust to allowing governments to optimally adjust productivity-enhancing investments which could potentially attenuate brain drain. Optimal public investment tends to decrease in response to higher emigration.
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Faculty
Faculté des sciences économiques et sociales
Language
  • English
Classification
Economics
Other electronic version

Faculté SES

Series statement
  • Working Papers SES ; 416
License
License undefined
Identifiers
  • RERO DOC 27894
  • RERO R007042550
Persistent URL
https://folia.unifr.ch/unifr/documents/302120
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