Immigration and the Source Country

Örn B. Bodvarsson () and Hendrik Berg ()
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Örn B. Bodvarsson: St. Cloud State University
Hendrik Berg: University of Nebraska

Chapter Chapter 8 in The Economics of Immigration, 2009, pp 183-219 from Springer

Abstract: Abstract This chapter examines the effect of migration on the source country. The standard labor supply and demand model shows that immigration causes the destination country to gain welfare while the source country loses welfare. There are more complex outcomes, however. This chapter first focuses on income remittances. The second half of this chapter covers the brain drain. The policy debate has been complicated by the lack of consensus on the actual costs and benefits of the brain drain for the source country. Offsetting the obvious negative consequences, the brain drain may also increase remittances back to the source country, and overseas opportunities provide incentives for all people in the source country to acquire more education.

Keywords: Human Capital; Gross Domestic Product; Labor Supply; Labor Demand; Innovative Activity (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-77796-0_8

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DOI: 10.1007/978-3-540-77796-0_8

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