Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies

Driouchi, Ahmed and Zouag, Nada (2010): Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies.

Abstract

An economic model is introduced to discuss the impacts of rural migration on skills in source and destination localities and regions. Two versions of the model are used without and with risks. In this context, the model considers that rural migration is determined by the demand for education and urban rural wage differences. The optimal decision rules attained are tested against available aggregate data for series of developing countries. The preliminary empirical results show the existence of country variations of rural emigration with varied impacts on education with likely losses in localities of emigration. Economic and social policies are to account for these impacts mainly when emphasis is placed on regional and local development programs.

• Item Type: MPRA Paper
• Language: English
• Keywords: Rural migration; bias; education; skilled labor; local development
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials

References

Adams R., (2005). Remittances, Household Expenditure and Investment in Guatemala. World Bank Policy Research Working Paper 3532, Washington-DC.

Anderson, K. and Croser, J.L. (2010). Agricultural Distortions in Sub-Saharan Africa: Trade and Welfare Indicators, 19960 to 2004.CEPR Discussion Paper No. DP7747 .

Anderson, K. (2010). Krueger/Schiff/Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960. The World Bank Development Research Group, Policy Research Working Paper 5165.

Beine, M., Defoort, C. and Docquier, F. (2007). A Panel Data Analysis of the Brain Gain. Université catholique de Louvain.

Beine, M., Docquier, F. and Rapoport, H. (2006). Brain drain and human capital formation in developing countries: winners and losers. Université catholique de Louvain.

Beine, M., Docquier, F. and Rapoport, H. (2006). Measuring International Skilled Migration: New Estimates Controlling for Age of Entry. Université catholique de Louvain. Retrieved from: http://siteresources.worldbank.org/INTRES/Resources/4692321107449512766/MeasuringInternationalMigration_paper.pdf

Beine, M., Docquier, F. and Rapoport, H. (2003). Brain Drain and LDC’s Growth: Winners and Losers. The Institute for the Study of Labor, IZA DP No. 819.

Beine, M., Docquier, F. and Rapoport, H. (2001). Brain Drain and Economic Growth: Theory and Evidence. Journal of Development Economics, 64(1), 275-89.

Chakraborty, B. S. (2006). Brain Drain: An Alternative Theorization. Journal of International Trade & Economic Development, 15(3), 293-309.

Chen, H. J., (2006). International Migration and Economic growth: A source country perspective. Journal of Population Economics, 19, 725-748.

De Brauw, A., Taylor, J.E. and Rozelle, S. (2003). Migration and Incomes in Source Communities: A new economics of migration perspective from China”, Economic Development and Cultural Change, (52). 75-101.

Docquier, F. and Rapoport, H. (2003). Ethnic Discrimination and the Migration of Skilled Labor. Journal of Development Economics, 70(1), 159-72.

Docquier, F.& Marfouk, A. (2005). International migration by educational attainment (1990- 2000). World Bank Policy Research Working Paper number 3382.

Docquier, F. & Rapoport, H. (2005). How does skilled emigration affect developing countries? Facts, theory and policy. Paper prepared for presentation at the G-20 workshop on “Demographic challenges and migration”, Sydney.

Docquier, F., Lohest, O. & Marfouk, A. (2005). Brain Drain in Developing Region (1990-2000). IZA DP No. 1668.

Docquier, F. & Sekkat, K. (2006). The Brain Drain: What Do We Know? WP31. Agence Française de Développement.

Docquier, F., Lowell ; L. & Marfouk, A. (2007). A gendered assessment of the brain drain. Université catholique de Louvain.

Docquier, F. & Rapoport, H. (2007). Skilled Migration: The perspective of developing countries.” Université catholique de Louvain.

Docquier, F., Lohest, O. & Marfouk, A. (2007). Brain Drain in Developing Countries. The World Bank Economic Review, 1–26.

Driouchi, A., Baudassé, T., Boboc, C. and Zouag, N. (2007). New Economics of Brain Drain and Risk Aversion: Theory and Empirical Evidence. Laboratoire d'Economie d'Orléans, N° 2007-17.

Lucas, R.E. (2001). Lectures on economic growth. Harvard University Press, Cambridge, MA.

Lucas, R.E.B. (2005). International Migration Regimes and Economic Development. Report prepared for the Expert Group on Development Issues in the Swedish Ministry for Foreign Affairs, forthcoming in Edward Elgar Publisher.

Patrinos, H.A., Ridao-Cano, C. & Sakellariou, C. (2006). Estimating the Returns to Education: Accounting for Heterogeneity in Ability. World Bank Policy Research Working Paper 4040.

Ranis, G. (2007). Migration, Trade, Capital and Development: Substitutes, Complements and Policies. Economic Growth Center, discussion paper 950.

Rozelle, S., Taylor, E. & deBrauw A. (1999). Migration, Remittances and Agricultural Productivity in China. The American Economic Review, 89(2), 287-291.

Schaeffer, P. (2005), Human Capital, Migration Strategy, and Brain Drain. Journal of International Trade & Economic Development, 14(3), 319-335.

Stark, O. (1991). The Migration of Labour. Basil Blackwell, Cambridge.

Stark, O. and Bloom, D. (1985). The New Economics of Labor Migration. American Economic Review, 75(2), 173-178.

Stark, Oded, Casarico, A., Devillanova, C. & Uebelmesser, S. (2005); The New Economics of the Brain Drain: Mapping the Gains. Retrieved from: http://www.socialpolitik.de/tagungshps/2005/Papers/Casarico.pdf

Stark, O. & Fan, C. S. (2007). Rural-to-Urban Migration, Human Capital, and Agglomeration. Center of Migration Research, No. 27/86.

Taylor J.E. & Martin, P. (2001). Human Capital: Migration and Rural Population Change, in Handbook for Agricultural Economics, Elsevier Science, New York.