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Stark, Oded
Fan, C. Simon
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[Editor:] Pozo, Susan [Title:] Immigrants and Their International Money Flows [ISBN:] 9781429492072 [Publisher:] W.E. Upjohn Institute for Employment Research [Place:] Kalamazoo, MI [Pages:] 33-49
This chapter provides a novel explanation of "educated unemployment," which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that "educated unemployment" is caused by the perspective of international migration, that is, by the possibility of a "brain drain." In addition, the analysis shows that a developing country may end up with more educated workers despite the brain drain and educated unemployment.
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