The impact of migration on origin countries: a numerical analysis

Luca Marchiori (luca.marchiori@bcl.lu), Patrice Pieretti and Benteng Zou

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: The focus of this article is on the impact of high-skilled emigration on fertility and human capital of a sending country within an overlapping generations model where parents choose to finance higher education to a certain number of their children. We assume that high- and low-skilled children emigrate with a certain probability when they reach adulthood and that they send remittances to their parents back home. The model shows that an increase in the intensity of the brain drain induces parents to provide more higher education to their children and to raise less low-skilled children. The impact on fertility and on human capital formation however remains unclear. This is why we run numerical simulations by calibrating our model to a developing country like the Philippines. The calibration results show in particular, that increased brain drain lowers fertility and boosts long-run human capital formation in the sending country.

Keywords: Simulation method; migration; fertility (search for similar items in EconPapers)
JEL-codes: C63 F22 J13 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cmp, nep-dge, nep-hrm and nep-mig
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http://wwwfr.uni.lu/content/download/28783/339990/ ... rical%20analysis.pdf (application/pdf)

Related works:
Chapter: The Impact of Migration on Origin Countries: A Numerical Analysis (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:10-06

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