Does international mobility of high-skilled workers aggravate between-country inequality?
BP2-STS
- Grossmann, Volker ORCID University of Fribourg, CESifo, IZA
- Stadelmann, David ORCID University of Fribourg
- 2011
Published in:
- Journal of Development Economics. - Elsevier BV. - 2011, vol. 95, no. 1, p. 88-94
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.
- Faculty
- Faculté des sciences économiques et sociales et du management
- Department
- Département d'économie politique
- Language
-
- English
- Classification
- Economics
- License
- Rights reserved
- Open access status
- green
- Identifiers
-
- DOI 10.1016/j.jdeveco.2010.04.007
- ISSN 0304-3878
- Persistent URL
- https://folia.unifr.ch/unifr/documents/322920
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