Migration and Education Decisions in a Dynamic General Equilibrium Framework

29 Pages Posted: 20 Apr 2016

See all articles by Sebastien Dessus

Sebastien Dessus

World Bank - West Bank and Gaza Resident Mission

Charbel Nahas

World Bank - Middle East & North Africa Region

Date Written: November 1, 2008

Abstract

With growing international skilled labor mobility, education and migration decisions have become increasingly inter-related, and potentially have a large impact on the growth trajectories of source countries, through their effects on labor supply, savings, or the cost of education. The authors develop a generic dynamic general equilibrium model to analyze the education-migration nexus in a consistent framework. They use the model as a laboratory to test empirical conditions for the existence of net brain gain, that is, greater domestic accumulation of human capital (in per capita terms) with greater migration of skilled workers. The results suggest that although some structural parameters can favor simultaneously greater human capital accumulation and greater skilled migration - such as high ratio of remittances over domestic incomes, high dependency ratios in migrant households, low dependency ratios in source countries, increasing returns to scale in the education sector, technological transfers and export market access with Diasporas, and efficient financial markets - this does not necessarily mean that greater migration encourages the constitution of greater stocks of human capital in source countries.

Keywords: Population Policies, Economic Theory & Research, Labor Policies, Emerging Markets, Labor Markets

Suggested Citation

Dessus, Sebastien and Nahas, Charbel, Migration and Education Decisions in a Dynamic General Equilibrium Framework (November 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1300270

Sebastien Dessus (Contact Author)

World Bank - West Bank and Gaza Resident Mission ( email )

P.O. BOX 54842
Jerusalem
Israel
+972 2 236 65 49 (Phone)
+972 2 236 65 43 (Fax)

Charbel Nahas

World Bank - Middle East & North Africa Region

1818 H Street N.W
Washington, DC 20433
United States

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