Migration of Skilled Workers: Policy Interaction between Host and Source Countries

Slobodan Djajic, Michael Michael and Alexandra Vinogradova

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: This paper examines the interaction between policies of the host and source countries in the context of a model of skilled-worker migration. The host country aims to provide low-cost labor for its employers while also taking into consideration the fiscal burden of providing social services to migrant workers and their dependants. It optimizes by setting a time limit on the duration of a guest-worker's permit. The source country seeks to maximize its own welfare by optimally choosing the amount of training it offers to its citizens, some of whom may end up working abroad. Within this framework, we solve for the Nash equilibrium values of the policy instruments and compare them with the case where both countries cooperate to maximize joint welfare.

Keywords: Temporary Migration; Skilled Labor; Immigration Policy (search for similar items in EconPapers)
Pages: 36 pages
Date: 2012-06
New Economics Papers: this item is included in nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Journal Article: Migration of skilled workers: Policy interaction between host and source countries (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ucy:cypeua:12-2012

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