Migration of skilled workers: Policy interaction between host and source countries

Slobodan Djajić, Michael Michael and Alexandra Vinogradova

Journal of Public Economics, 2012, vol. 96, issue 11, 1015-1024

Abstract: We examine the interaction between policies of the host and source countries in the context of a model of skilled-worker migration. The host country aims to provide low-cost labor for its employers while also taking into consideration the fiscal burden of providing social services to immigrants. It optimizes by setting a time limit on the duration of a guest-worker's permit. The source country maximizes its net output by optimally choosing the amount of training provided to its citizens, some of whom may migrate. We solve for the Nash and cooperative-equilibrium values of the policy instruments.

Keywords: Temporary migration; Skilled labor; Immigration policy (search for similar items in EconPapers)
JEL-codes: F22 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:96:y:2012:i:11:p:1015-1024

DOI: 10.1016/j.jpubeco.2012.07.001

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