Migration and Education Decisions in a Dynamic General Equilibrium Framework
With growing international skilled labor mobility, education and migration decisions have become increasingly inter-related, and potentially have a large impact on the growth trajectories of source countries, through their effects on labor supply,...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/11/10009164/migration-education-decisions-dynamic-general-equilibrium-framework http://hdl.handle.net/10986/6357 |
| Summary: | With growing international skilled labor
mobility, education and migration decisions have become
increasingly inter-related, and potentially have a large
impact on the growth trajectories of source countries,
through their effects on labor supply, savings, or the cost
of education. The authors develop a generic dynamic general
equilibrium model to analyze the education-migration nexus
in a consistent framework. They use the model as a
laboratory to test empirical conditions for the existence of
net brain gain, that is, greater domestic accumulation of
human capital (in per capita terms) with greater migration
of skilled workers. The results suggest that although some
structural parameters can favor simultaneously greater human
capital accumulation and greater skilled migration - such as
high ratio of remittances over domestic incomes, high
dependency ratios in migrant households, low dependency
ratios in source countries, increasing returns to scale in
the education sector, technological transfers and export
market access with Diasporas, and efficient financial
markets - this does not necessarily mean that greater
migration encourages the constitution of greater stocks of
human capital in source countries. |
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