Negative selection migration and education investment: theoretical investigation on the roles of remittances and the prospect of migration

Daichi Yamada

Economics Bulletin, 2018, vol. 38, issue 3, 1292-1301

Abstract: This paper theoretically examines the effect of labor migration on education investment in migrant-sending countries, focusing on negative selection migration where unskilled workers migrate. Negative selection migration has two conflicting effects. On one hand, the prospect of children's future migration would reduce education incentives. On the other hand, parents' migration provides remittances and this could encourage education investment. This paper presents a simple model to simultaneously incorporate these two effects. The results show that, in countries where the quality of education is high, the positive effect of parents' remittances outweighs the negative effect of the prospect of future migration. However, in countries with poor education quality, the negative effect of the prospect plays the main role and reduces education investment. Improving the quality of education is vital for obtaining a positive consequence from negative selection migration.

Keywords: Education investment; labor migration; negative selection; remittances (search for similar items in EconPapers)
JEL-codes: I2 O1 (search for similar items in EconPapers)
Date: 2018-07-18
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