Title

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

Document Type

Journal article

Source Publication

Review of International Economics

Publication Date

5-1-2011

Volume

19

Issue

2

First Page

277

Last Page

287

Abstract

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.

DOI

10.1111/j.1467-9396.2011.00946.x

Print ISSN

09657576

E-ISSN

14679396

Publisher Statement

Copyright © 2011 Blackwell Publishing Ltd

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Stark, O., & Fan, C. S. (2011). The prospect of migration, sticky wages, and 'educated unemplyment'. Review of International Economics, 19(2), 277-287. doi: 10.1111/j.1467-9396.2011.00946.x