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Wage Effects of High-Skilled Migration: International Evidence

Volker Grossmann () and David Stadelmann

No 6611, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 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. We propose different instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and wages of skilled workers between pairs of source and destination countries. These address the endogeneity problem which potentially arises when international wage differences affect migration decisions.

Keywords: wage effects; international high-skilled migration; total factor productivity (search for similar items in EconPapers)
JEL-codes: F22 O30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-lab, nep-lma and nep-mig
Date: 2012-05
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Published in: World Bank Economic Review, 2013, 27 (2), 297-319

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http://ftp.iza.org/dp6611.pdf (application/pdf)

Related works:
Journal Article: Wage Effects of High-Skilled Migration: International Evidence (2013) Downloads
Working Paper: Wage effects of high-skilled migration: international evidence (2013) Downloads
Working Paper: Wage Effects of High-skilled Migration: International Evidence (2010) Downloads
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