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

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

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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