2010
DOI: 10.1016/j.jpubeco.2010.01.005
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Education, unemployment and migration

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 wa… Show more

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Cited by 44 publications
(29 citation statements)
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“…Immigrant flows have been found to be correlated with regional disparities on economic performance and labour market conditions, as stated by Pissarides and Wadsworth (1989) and Blanchard and Katz (1992). However, the effect depends heavily upon the endowments (both human and physical capitals) of the incoming population: If high, demand for qualified workforce is likely to increase, as net investment rates and aggregate productivity will also tend to rise, as in Eggert et al (2010) and Moretti (2012). If low, however, new inhabitants will enter low skilled unemployment lines, as demand for this type of labour might not increase as fast as supply does (Walden, 2012).…”
Section: Migrationmentioning
confidence: 97%
“…Immigrant flows have been found to be correlated with regional disparities on economic performance and labour market conditions, as stated by Pissarides and Wadsworth (1989) and Blanchard and Katz (1992). However, the effect depends heavily upon the endowments (both human and physical capitals) of the incoming population: If high, demand for qualified workforce is likely to increase, as net investment rates and aggregate productivity will also tend to rise, as in Eggert et al (2010) and Moretti (2012). If low, however, new inhabitants will enter low skilled unemployment lines, as demand for this type of labour might not increase as fast as supply does (Walden, 2012).…”
Section: Migrationmentioning
confidence: 97%
“…Among many potential factors, higher expected income had been mainly recognized as one of the most important factors to attract human capital to a region. Skill-biased technological change and professional jobs have incentivized migration to the regions while yielding lower wages for unskilled workers in the same regions [26][27][28][29]. Providing appropriate local employment opportunities is crucial to retaining top quality graduates, although college graduates tend to stay in a region if those graduates were born or attended high school in the same state [29].…”
Section: Literature Reviewmentioning
confidence: 99%
“…Hence, they are hypothesised as having a higher probability of socio-economic integration leading to a lower hazard to return. However, they may have a lower likelihood of finding adequate employment abroad due to possible low interregional mobility of their skills and diplomas (Eggert, Krieger and Meier, 2010). Also, Borjas and Bratsberg (1996) argue that host countries are a type of magnet for the less educated.…”
Section: Pecuniary Incomementioning
confidence: 99%