Arbeitspapier

The prospect of migration, sticky wages, and 'educated unemployment'

to connected objects

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.

Language: Englisch

Bibliographic citation: Series: University of Tübingen Working Papers in Economics and Finance ; No. 9

Classification: Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
International Migration
Human Capital; Skills; Occupational Choice; Labor Productivity
Economic Development: Human Resources; Human Development; Income Distribution; Migration

Subject: The prospect of migration
Sticky wages
'Educated unemployment'
Government intervention

Event: Geistige Schöpfung

(who): Fan, C. Simon
Stark, Oded

Event: Veröffentlichung

(who): University of Tübingen, Faculty of Economics and Social Sciences

(where): Tübingen

(when): 2011

Handle: http://hdl.handle.net/10419/45545

URN: urn:nbn:de:bsz:21-opus-56142

Last update: 10.03.2025, 11:43 AM CET

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Object type

Arbeitspapier

Associated

Fan, C. Simon
Stark, Oded
University of Tübingen, Faculty of Economics and Social Sciences

Time of origin

2011

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