Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84794
Authors: 
Stark, Oded
Byra, Lukasz
Year of Publication: 
2012
Series/Report no.: 
ZEF Discussion Papers on Development Policy 164
Abstract: 
In this paper we study the impact of the international migration of unskilled workers on skill formation and the average skill level in the home country. We analyze what appears to be the least threatening scenario from the point of view of its effect on the supply of skills at home: namely, migration exclusively by unskilled workers. Somewhat surprisingly, we find that even without the departure of skilled workers, the home country suffers reduced aggregate skill formation. Although as a response to a higher wage rate per unit of human capital in the new equilibrium skilled workers choose to accumulate more human capital than before the opening up to migration of unskilled workers, the number and share of skilled workers in the home country's workforce fall. The combined effect is a decrease in the average level of human capital in the home country.
Subjects: 
Migration of unskilled workers
Human capital formation
Depletion of human capital
JEL: 
F22
J24
O15
Document Type: 
Working Paper

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