nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒02‒05
six papers chosen by
Yuji Tamura
Australian National University

  1. Can Foreign Health Assistance Reduce the Medical Brain Drain? By Yasser MOULLAN
  2. The Importance of Labour Mobility for Spillovers across Industries By Johannes Pöschl; Neil Foster
  3. Remittances and the Brain Drain Revisited: The microdata show that more educated migrants remit more By Albert Bollard; David McKenzie; Melanie Morten; Hillel Rapoport
  4. Which policy options for Europe in the global competition for talent? Brain competition policy as a new breed of locational policy with positive externalities By Christian Reiner
  5. A Labor Mobility Agenda for Development By Michael Clemens
  6. Global Wage Inequality and the International Flow of Migrants By Mark R. Rosenzweig

  1. By: Yasser MOULLAN (Centre d'Economie de la Sorbonne(CES-CNRS UMR 8174), UniversitŽ de Paris 1)
    Abstract: This paper analyses the impact of foreign health aid on the emigration rates of physicians. We use a panel database to investigate the emigration of physicians from 192 source countries to 17 destination countries between 1995 and 2004. First, we investigate the direct impact of health assistance using the generalised method of moments (GMM) and highlight a significant negative effect of foreign health assistance on the medical brain drain. Moreover, we analyse whether this effect of health aid is more effective in a context of good governance. We find that health aid is more effective at reducing physicians' emigration rates when the levels of corruption and inflation are low.
    Keywords: International Migration, Physicians Emigration Rates, Foreign Aid, Foreign health assistance
    JEL: F22 F35 O15 C23 I1 O11
    Date: 2009–12–03
  2. By: Johannes Pöschl (The Vienna Institute for International Economic Studies, wiiw); Neil Foster (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper addresses the link between productivity and labour mobility. The hypothesis tested in the paper is that technology is transmitted across industries through the movement of skilled workers embodying human capital. The embodied knowledge is then diffused within the new environment creating spillovers and leading to productivity improvements. A theoretical framework is presented wherein productivity growth is modelled through knowledge acquisition with respect to labour mobility. The empirical estimates confirm the existence of positive cross-sectoral knowledge spillovers and indicate that labour mobility has beneficial effects on industry productivity. Due to the fact that labour mobility is closely linked to input-output relations this finding provides evidence suggesting that part of the estimated productivity effects of domestic rent spillovers are in fact due to knowledge spillovers resulting from labour mobility.
    Keywords: knowledge spillovers, labour mobility, productivity, manufacturing, industry, human capital, growth
    JEL: J24 J60 O47
    Date: 2009–10
  3. By: Albert Bollard (Stanford University); David McKenzie (World Bank, BREAD, IZA and CReAM); Melanie Morten (Yale University); Hillel Rapoport (Bar-Ilan University, EQUIPPE and CID, Harvard University)
    Abstract: Two of the most salient trends surrounding the issue of migration and development over the last two decades are the large rise in remittances, and an increased flow of skilled migration. However, recent literature based on cross-country regressions has claimed that more educated migrants remit less, leading to concerns that further increases in skilled migration will hamper remittance growth. We revisit the relationship between education and remitting behavior using microdata from surveys of immigrants in eleven major destination countries. The data show a mixed pattern between education and the likelihood of remitting, and a strong positive relationship between education and the amount remitted conditional on remitting. Combining these intensive and extensive margins gives an overall positive effect of education on the amount remitted. The microdata then allow investigation as to why the more educated remit more. We find the higher income earned by migrants, rather than characteristics of their family situations explains much of the higher remittances.
    Keywords: Remittances, Migration, Brain Drain, Education
    JEL: O15 F22 J61
    Date: 2009–10
  4. By: Christian Reiner
    Date: 2010
  5. By: Michael Clemens
    Abstract: Rich countries have made efforts for half a century to help people in poor countries catch up to rich-country standards of living. Those efforts have included giving foreign aid, encouraging overseas investment, dismantling trade barriers, and spreading ideas and institutions. That is, their international development policy has been to encourage the globalization of almost all factors of production—except labor. So far, this policy has failed to cause the living standards of most people in most developing countries to converge with living standards in rich countries. But the globalization of labor—greater mobility for workers across borders—quickly and massively raises migrants’ living standards toward those of rich countries. This paper argues that every rich country should consider its immigration policy to be part of its international development policy, and vice versa. A development policy that includes migration will be more effective; an immigration policy that includes development will better serve rich countries’ ideals and interests. The paper also gives a non-technical review of new research on several common objections to unifying development policy and migration policy. One concrete way forward is for rich countries to greatly open up legal pathways for temporary labor movement.
    Keywords: international development; immigration policy; labor; migration
    Date: 2010–01
  6. By: Mark R. Rosenzweig (Economic Growth Center, Yale University)
    Abstract: A framework for understanding the determinants in the variation in the pricing of skills across countries and the model underlying the Mincer specification of wages that is used widely to estimate the relationship between schooling and wages are described. A method for identifying skill prices and for testing the Mincer model, using wages and the human capital attributes of workers located around the world, is discussed. A global wage equation that nests the Mincer specification is estimated that provides skill price estimates for 140 countries. The estimates reject the Mincer model. The skill price estimates indicate that variation in skill prices dominates the cross-country variation in schooling levels or rates of return to schooling in accounting for the global inequality in the earnings of workers worldwide. Variation in skill prices and GDP across countries has opposite and significant effects on the number and quality of migrants to the United States.
    Keywords: wage, skill price, international migration, inequality
    JEL: J31 J61
    Date: 2010–01

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