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Does international mobility of high-skilled workers aggravate between-country inequality?

Volker Grossmann () and David Stadelmann

Journal of Development Economics, 2011, vol. 95, issue 1, 88-94

Abstract: This paper analyzes the interaction of international migration of high-skilled labor and relative wage income between source and destination economies of expatriates. We develop an overlapping-generations model with increasing returns which suggests that international integration of the market for skilled labor aggravates between-country inequality by harming those which are source economies to begin with while benefiting host economies. The result is robust to allowing governments to optimally adjust productivity-enhancing investments which could potentially attenuate brain drain. Optimal public investment tends to decrease in response to higher emigration.

Keywords: Brain; drain; Between-country; wage; differences; Public; investment; Total; factor; productivity (search for similar items in EconPapers)
Date: 2011
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Working Paper: Does International Mobility of High-Skilled Workers Aggravate Between-Country Inequality ? (2010) Downloads
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