Selective Migration and Economic Development: A Generalized Approach

Narcisse Cha'Ngom, Christoph Deuster, Frédéric Docquier and Joël Machado

No 2023-06, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: International migration is a selective process that induces ambiguous effects on human capital and economic development in countries of origin. We establish the theoretical micro-foundations of the relationship between selective emigration and human capital accumulation in a multi-country context. We then embed this migration-education nexus into a development accounting framework to quantify the effects of migration on development and inequality. We find that selective emigration stimulates human capital accumulation and the income of those remaining behind in a majority of countries, in particular in the least developed ones. The magnitude of the effect varies according to the level of development, the dyadic structure of migration costs, and the education policy. Emigration significantly reduces cross-country income inequality and the proportion of the world population living in extreme poverty.

Keywords: human capital; migration; selection; brain drain; brain gain; inequality (search for similar items in EconPapers)
JEL-codes: E24 J24 J61 O15 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2023-06
New Economics Papers: this item is included in nep-int
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Working Paper: Selective Migration and Economic Development: A Generalized Approach (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2023-06

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