Is Migration a Good Substitute for Education Subsidies?

Docquier, Frédéric; Faye, Ousmane; Pestieau, Pierre

Is Migration a Good Substitute for Education Subsidies?

2008

Docquier, Frédéric | Faye, Ousmane | Pestieau, Pierre

Assuming a given educational policy, the recent brain drain literature reveals that skilled migration can boost the average level of schooling in developing countries. This paper introduces educational subsidies determined by governments concerned by the number of skilled workers remaining in the country. The theoretical analysis shows that developing countries can benefit from skilled emigration when educational subsidies entail high .fiscal distortions. However when taxes are not too distortionary, it is desirable to impede emigration and subsidize education. The authors investigate the empirical relationship between educational subsidies and migration prospects, obtaining a negative relationship for 105 countries. Based on this result, the analysis revisits the country specific effects of skilled migration upon human capital. The findings show that the endogeneity of public subsidies reduces the number of winners and increases the magnitude of the losses.

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Mots clés AGROVOC

age structure brain drain capital formation corruption developing countries development economics economic development economic growth elasticity emigration expenditure fertility growth rate human capital immigration international bank liquidity migration population density population growth population structure public education remittances rule of law social capital social costs social welfare sub-saharan africa urbanization

Informations bibliographiques

Editeur

World Bank, Washington, DC

D'autres materias

Demographic; Constant returns to scale; Policy research; Functional forms; Economic cooperation; Political turmoil; Public good; Number of adults; Number of emigrants; Interest rate; Social returns; Educational attainment; Skill level; Technological change; Low-income countries; Public subsidies; Individual decisions; Capital accumulation; United nations population division; Brain gain; Middle-income; Skilled workers; Turnover; Risk neutral; Government budget; Capital investments; Labor supply; Migration costs; Education level; Production function; Middle-income countries; Open economy; Level of education; Unskilled migration; Immigration policy; Skilled migrants; Education levels; Empirical analysis; Immigrants; Return migration; Tertiary education; Secondary schooling; Public subsidy; Policy implications; Host country; Gdp; Tertiary levels; Emigration rate; Population growth rates; Civil war; Progress; Skilled migration; Consequences of migration; Credit market; Capital stock; Benchmark; Mexican immigrants; Impact of migration; Administrative costs; International migration; Gdp per capita; Investment in education; Policy research working paper; Governance indicators; Externalities; Expenditures; World development indicators; Expected returns; Population size; Tax; Totalitarian regimes; Social optimum; Physical capital; Respect; Good governance

Licence

Policy Research Working Paper No. 4614http://creativecommons.org/licenses/by/3.0/World BankCC BY 3.0 Unported

Source

Policy Research Working Paper No. 4614

Sur AGRIS depuis: 2014-09-15

Format: AGRIS AP

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Liens

http://hdl.handle.net/10986/6716

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Is Migration a Good Substitute for Education Subsidies?

2008

Mots clés AGROVOC

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