Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84787
Authors: 
Stark, Oded
Fan, C. Simon
Year of Publication: 
2011
Series/Report no.: 
ZEF Discussion Papers on Development Policy 146
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.
JEL: 
E24
F22
J24
O15
Document Type: 
Working Paper

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