Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/45545
Authors: 
Fan, C. Simon
Stark, Oded
Year of Publication: 
2011
Series/Report no.: 
University of Tübingen working papers in economics and finance 9
Abstract: 
An increase in the probability of work abroad, where the returns to schooling are higher than at home, induces more individuals in a developing country to acquire education, which leads to an increase in the supply of educated workers in the domestic labor market. Where there is a sticky wage-rate, the demand for labor at home will be constant. With a rising supply and constant demand, the rate of unemployment of educated workers in the domestic labor market will increase. Thus, the prospect of employment abroad causes involuntary 'educated unemployment' at home. A government that is concerned about 'educated unemployment' and might therefore be expected to encourage unemployed educated people to migrate will nevertheless, under certain conditions, elect to restrict the extent of the migration of educated individuals.
Subjects: 
The prospect of migration
Sticky wages
'Educated unemployment'
Government intervention
JEL: 
E24
F22
J24
O15
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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