Highly Skilled International Migration, STEM Workers, and Innovation

Anelí Bongers, Carmen Diaz-Roldan and Jose Torres ()

No 2018-08, Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center

Abstract: This paper studies the implications of highly skilled labor international migration in a two-country Dynamic Stochastic General Equilibrium model. The model considers three types of workers: STEM workers, non-STEM college educated workers, and non-college educated workers. Only high skilled workers can move internationally from the relative low productivity (sending) country to the high productivity (host) country. Aggregate productivity in each economy is a function of innovations, which can be produced only by STEM workers. The model predicts i) the existence of a wage premium of STEM workers relative to non-STEM college educated workers, ii) this wage premium is higher in the destination country and increases with positive technological shocks, iii) a reduction in migration costs increases output, wages and total labor in the destination country, with opposite e¤ects in the country of origin, and iv) high skilled immigrants reduce skilled native labor and do not a¤ect unskilled labor.

Keywords: STEM workers; Migration; Dynamic Stochastic General Equilibrium models; Innovation (search for similar items in EconPapers)
JEL-codes: F43 J61 O31 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2018-11
New Economics Papers: this item is included in nep-dge, nep-int, nep-lab, nep-mig and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://theeconomics.uma.es/malagawpseries/Papers/METCwp2018-8.pdf First version, 2018 (application/pdf)

Related works:
Journal Article: Highly Skilled International Migration, STEM Workers, and Innovation (2022)
Working Paper: Highly Skilled International Migration, STEM Workers, and Innovation (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:mal:wpaper:2018-8

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