The Influence of Migration on Human Capital Development

Salvador Contreras ()

International Economic Journal, 2013, vol. 27, issue 3, 365-384

Abstract: This paper develops a general equilibrium overlapping generation model of migrant and domestic households that reside in one of two countries, one rich and one poor. The model is used to analyze the impact of migration on human capital development. The model shows that migration, with remittances to non-migrant poor households, has a positive impact on non-migrant households' human capital accumulation ('brain gain'). The model shows that migration (or the option of) induces human capital investment. However, it is shown that remittances have a negative impact on the growth that migrant households enjoy in the rich country. In addition, strong links to source country reduce the educational attainment of second-generation migrant households.

Date: 2013
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DOI: 10.1080/10168737.2012.659277

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