High Skilled Migration and the Exertion of Effort by the Local Population

42 Pages Posted: 11 Sep 2002

See all articles by Gil S. Epstein

Gil S. Epstein

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; University College London - CReAM - Centre for Research and Analysis of Migration

Astrid Kunze

Norwegian School of Economics (NHH) - Department of Economics; Institute for the Study of Labor (IZA); CESIfo

Melanie E. Ward-Warmedinger

European Central Bank (ECB); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: July 2002

Abstract

The design of optimal immigration policy, particularly in the face of the spiraling demand for highly skilled workers, such as IT workers and engineers, is a topical issue in the policy debate as well as the economic literature. In this paper, we present empirical evidence from firm-level data collected in 2000 on the demand in Europe for highly skilled workers in general and abroad and their determinants. Major findings are that the fraction of highly skilled recruited from the international labour market is very small, and it seems that foreign and domestic workers are very similar in terms of formal education, that is subject of specialization, and job characteristics. We suggest an efficiency wage model that can explain why firms recruit foreign workers in small numbers and are willing to pay migrants the same wage as local workers and at the same time are willing to pay for moving costs, for example, that are specific to immigrating workers.

Keywords: Migration, labour demand, firm data, highly skilled workers, globalization

JEL Classification: F22, J41, J61, L20

Suggested Citation

Epstein, Gil S. and Kunze, Astrid and Ward-Warmedinger, Melanie E., High Skilled Migration and the Exertion of Effort by the Local Population (July 2002). CEPR Discussion Paper No. 3477. Available at SSRN: https://ssrn.com/abstract=329920

Gil S. Epstein (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
+972 3 531 8937 (Phone)
+972 3 535 3180 (Fax)

HOME PAGE: http://faculty.biu.ac.il/~epsteig/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

Astrid Kunze

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen, NO-5045
Norway
+ 47 55 95 97 54 (Phone)
+ 47 55 95 95 43 (Fax)

HOME PAGE: http://www.nhh.no/sam/cv/kunze-astrid.html

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 221 (Phone)
+49 228 38 94 180 (Fax)

CESIfo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Melanie E. Ward-Warmedinger

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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