Modelling the Flow of Knowledge and Human Capital: A Framework of Innovative Capital
d'Artis Kancs and
No EERI_RP_2011_21, EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels
Recently, the EU Council adopted a new labour migration policy instrument - the EU Blue Cards (BC) - for attracting the highly skilled workers to the EU. The present paper examines the potential impacts, which BC may cause on less developed sending countries (LDC). Our results suggest that the EU BC will reduce human capital in LDC. In addition, BC will also have a negative impact on knowledge capital. These findings suggest that without appropriate policy responses, BC makes developing country growth prospects rather bleak than blue. Therefore, we propose and analyse alternative migration policy instruments for LDC. We find that policies implemented on the demand side of the skilled labour market are the most efficient. In contrast, policies that address the supply side of the skilled labour market are the least efficient, though they might be less costly to implement.
Keywords: Knowledge capital; human capital; high-skill migration; innovative capital; economic growth. (search for similar items in EconPapers)
JEL-codes: F02 F22 J24 J61 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-knm, nep-lab and nep-mig
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Journal Article: Modelling the flow of knowledge and human capital: a framework of innovative capital (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eei:rpaper:eeri_rp_2011_21
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