The Impact of Migration on Origin Countries: A Numerical Analysis

Luca Marchiori (), Patrice Pieretti () and Benteng Zou
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Patrice Pieretti: Université du Luxembourg

A chapter in Computational Methods in Economic Dynamics, 2011, pp 183-195 from Springer

Abstract: Abstract The focus of this article is on the impact of high-skilled emigration on fertility and human capital of a sending country. The model shows that an increase in the intensity of the brain drain induces parents to provide higher education to a larger number of their children and to rear 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. Since, within our dynamic framework, parents’ decisions depend on the expected earnings of their children, we employ a simulation method that is able to solve models with forward-looking variables. The calibration results show in particular that increased brain drain lowers fertility and boosts long-run human capital formation in the sending country.

Keywords: Human Capital; Destination Country; Brain Drain; Origin Country; Human Capital Formation (search for similar items in EconPapers)
Date: 2011
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Working Paper: The impact of migration on origin countries: a numerical analysis (2010)
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DOI: 10.1007/978-3-642-16943-4_9

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