International migration and "educated unemployment"
Journal of Development Economics
"Educated unemployment", Beneficial brain drain, Human capital formation, International migration
This paper provides a novel explanation of "educated unemployment", which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that "educated unemployment" is caused by the prospect of international migration, that is, by the possibility of a "brain drain". In addition, the analysis shows that a developing country may end up with more educated workers despite the brain drain and educated unemployment.
Copyright © 2006 Elsevier B.V.
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Fan, C. S., & Stark, O. (2007). International migration and "educated unemployment". Journal of Development Economics, 83(1), 76-87. doi: 10.1016/j.jdeveco.2006.05.002