Wage Effects of High-skilled Migration: International Evidence

Volker Grossmann and David Stadelmann

No 415, FSES Working Papers from Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland

Abstract: This paper argues that international migration of high-skilled workers triggers productivity effects at the macro level such that the wage rate of skilled workers may well rise in host countries and decline in source countries. We exploit a recent data set on international bilateral migration flows and provide evidence which is consistent with this hypothesis. In order to identify the causal effect of migration on wages, we propose different instrumentation strategies which address the endogeneity problem arising from the fact that international wage differences affect migration decisions.

Keywords: High-skilled migration; Wage effects; Total factor productivity (search for similar items in EconPapers)
JEL-codes: F22 O30 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-05-26
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Wage Effects of High-Skilled Migration: International Evidence (2013)
Working Paper: Wage effects of high-skilled migration: international evidence (2013)
Working Paper: Wage Effects of High-Skilled Migration: International Evidence (2012)
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