Brain drain, remittances, and fertility

Luca Marchiori (), Patrice Pieretti and Benteng Zou

No 408, Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University

Abstract: This paper analyzes the effects of skilled migration and remittances on fertility decisions at origin. We develop an overlapping generations model which accounts for endogenous fertility and education. Parents choose the number of children they want to raise and decide upon how many children obtain higher education. Only high skilled individuals migrate with a certain probability and remit to their parents. We find that an increase in the probability to emigrate leads both high and low skilled parents to send more children to obtain higher education. However the effect on the number of children is ambiguous. In a further analysis, we calibrate the model to match different characteristics of a developing economy. When the destination country relaxes the immigration restrictions, more high skilled individuals leave the origin country. The result is that, at origin, increased high skilled emigration reduces fertility and fosters human capital accumulation.

Keywords: Human capital; Remittances; Fertility; Skilled emigration (search for similar items in EconPapers)
Date: 2011-08-15
New Economics Papers: this item is included in nep-dev, nep-dge, nep-hrm, nep-lab and nep-mig
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https://pub.uni-bielefeld.de/download/2316249/2319855 First Version, 2008 (application/pdf)

Related works:
Journal Article: Brain Drain, Remittances, and Fertility (2008)
Working Paper: Brain Drain, Remittances, and Fertility (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:bie:wpaper:408

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