"Endognous Growth and
International Labor Migration:
forthcoming in Dynamics, Economic Growth, and International Trade, edited by Bjarne S. Jensen and Kar-yiu Wong, Ann Arbor: University of Michigan Press, 1997.
would like to receive a copy of this paper, please click here.
This paper examines the relationship between economic growth and international labor migration. It begins with an economy in which workers are allowed to inherit past human capital and can acquire more human capital by devoting some of their time to education and training. For a closed economy, growth is determined endogenously by human capital accumulation and some government policies.
When international labor migration is allowed in a two-country model, individuals have the options of working and training either in the source country or in the host country. Depending on when and for how long individuals migrate, three different types of migration can be distinguished: (voluntary) temporary migration, permanent migration and brain drain. Instead of analyzing these three types of migration separately and treating them exogenously, as is usually done in the existing literature, this paper argues that they should be determined endogenously by the individuals, based on the economic conditions and government policies in the host and source countries.
This paper then examines how economic
growth of the host country may affect the amount and the
type of international migration, and the effects
international migration may have on the growth and
welfare of the host country. This paper also argues that
international labor migration is a channel through which
technology and knowledge can be transferred from one
country to another.
Comments on this home page are most welcome. Please click here.
This page was last revised on January 24, 2000.