Human Capital Investment under Exit Options: Evidence from a Natural Quasi-Experiment

Michael Clemens and Satish Chand

No 152, Working Papers from Center for Global Development

Abstract: When countries select immigrants based on skill, what happens in the migrants' countries of origin? Departing skilled workers obviously tend to reduce stocks of skill there, but the prospect of skilled migration can induce more investment in skill. It is not clear which effect dominates. This paper studies one of the fastest and relatively largest exoduses of skilled workers on record, in the Pacific country of Fiji, which paradoxically produced a net increase in the stock of skill within Fiji. It offers evidence that skilled migration prospects caused that net increase, and evidence to rule out several competing explanations.

JEL-codes: F22 J24 N30 O15 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2008-09, Revised 2019-02
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-mig
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Citations: View citations in EconPapers (71)

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Related works:
Journal Article: Human capital investment under exit options: Evidence from a natural quasi-experiment (2023)
Working Paper: Human Capital Investment under Exit Options: Evidence from a Natural Quasi-Experiment (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:cgd:wpaper:152

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