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Does Migration Encourage Human Capital Formation in Labor-Sending Country?

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Title: Does Migration Encourage Human Capital Formation in Labor-Sending Country?
Authors: Shimada, Akira
Issue Date: 3-Dec-2013
Publisher: Center for Economic Integration
Citation: Journal of Economic Integration; 28(4), pp.631-648; 2013
Abstract: This study investigates the effects of migration possibilities on the demand for education and human capital formation in the labour-sending country. The paper assumes that workers have to pay a pecuniary cost privately to receive education under budget constraints. It was found that higher migration possibilities result in an increase in the number of workers who demand education due to increases in its return. However, these workers lower the individual demand for education due to price increases. When the education supply is insufficient, higher migration possibilities may lower average human capital; that is, a brain drain may occur. This contrasts with the usual argument that emphasises the positive effect of migration possibilities. Restrictive immigration policies were found not to be completely detrimental to labour-sending countries since such policies may enhance the human capital formation.
Keywords: Brain drain / Brain gain / Education market / Heterogeneous workers / Human capital formation / Migration
URI: http://hdl.handle.net/10069/34072
ISSN: 1225651X
DOI: 10.11130/jei.2013.28.4.632
Rights: © 2013-Center for Economic Integration, Sejong Institution, Sejong University, All Rights Reserved. / This is an open access article distributed under the terms of the Creative Commons Attribution License.
Type: Journal Article
Text Version: publisher
Appears in Collections:Articles in academic journal

Citable URI : http://hdl.handle.net/10069/34072

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