Wage Effects of High-Skilled Migration: International Evidence
University of Fribourg - Faculty of Economics and Social Science; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
University of Bayreuth; CREMA
IZA Discussion Paper No. 6611
This paper argues that international migration of high-skilled workers triggers productivity effects at the macro level such that the wage rate of skilled workers may rise in host countries and decline in source countries. We exploit a recent data set on international bilateral migration flows and provide evidence which is consistent with this hypothesis. We propose different instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and wages of skilled workers between pairs of source and destination countries. These address the endogeneity problem which potentially arises when international wage differences affect migration decisions.
Number of Pages in PDF File: 30
Keywords: international high-skilled migration, wage effects, total factor productivity
JEL Classification: F22, O30working papers series
Date posted: June 16, 2012
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