Education, unemployment and migration

Wolfgang Eggert, Tim Krieger and Volker Meier

No 7, Working Papers CIE from Paderborn University, CIE Center for International Economics

Abstract: This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skilled-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

Keywords: Brain drain; Brain gain; Education; Unemployment; Interregional migration; Externalities (search for similar items in EconPapers)
JEL-codes: H23 I20 J61 J64 R10 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/ciepap/WP07.pdf Revised version, 2009 (application/pdf)

Related works:
Journal Article: Education, unemployment and migration (2010)
Working Paper: Education, unemployment and migration (2010)
Working Paper: Education, unemployment and migration (2009)
Working Paper: Education, Unemployment and Migration (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pdn:ciepap:7

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