A Quantitative General Equilibrium Approach to Migration, Remittances and Brain Drain

Nikita Cespedes Reynaga

No 2011-007, Working Papers from Banco Central de Reserva del Perú

Abstract: Developing countries have experienced an outstanding outflow of skilled workers (brain- drain) over the last several decades. Additionally, migrants tend to be tied to their country of birth, since they send a large amount of remittances to their relatives. Furthermore, migration is not permanent, since a considerable number of workers return to their country of birth after a migration spell. In this paper we develop a model that is consistent with these facts. We use our model to address some important issues in the migration literature from a theoretical perspective. We study the general equilibrium effects of migration, its long-term effects, and its welfare effects, and we see whether the joint effect of return migration and remittances is strong enough to offset the effects of skilled migration. Finally, we evaluate the effectiveness of policy interventions that attempts to offset the effects of a brain drain.

Keywords: Migration; General Equilibrium; Brain drain; Remittances; Heterogeneous Agents (search for similar items in EconPapers)
Date: 2011-05
New Economics Papers: this item is included in nep-dev and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.bcrp.gob.pe/docs/Publicaciones/Documen ... -Trabajo-07-2011.pdf Application/pdf

Related works:
Journal Article: A quantitative general equilibrium approach to migration, remittances, and brain drain (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rbp:wpaper:2011-007

Access Statistics for this paper

More papers in Working Papers from Banco Central de Reserva del Perú Contact information at EDIRC.
Bibliographic data for series maintained by Research Unit ().