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Curse of lower-skilled emigration on human capital formation: Evidence from the migration surge of the 2000’s

Crawford School of Public Policy
Photo by Rahul Kashyap on Unsplash

Event details

ACDE Seminar

Date & time

Tuesday 26 July 2022
2.00pm–3.30pm

Venue

Online via Zoom

Speaker

Sam Tang, University of Western Australia

The emigration of lower-skilled workers is generally accepted as beneficial for the development of migrant-sending countries. However, it can also lead to a disincentive effect on human capital formation of the source country. Using a new panel dataset that captures the sharp upsurge of lower-skilled migrants in OECD countries in the 2000s, we find that the prospects of lower-skilled emigration encourage potential migrants to complete secondary schooling but discourage them from pursuing tertiary education, thus retarding long-run human capital formation of the source country. Furthermore, in contrast with middle- and high-income countries, poor countries show little disincentive effect of the prospects of lower-skilled emigration on human capital formation. This finding provides a strong support for incorporating lower-skilled emigration into the studies of brain drain/gain.

Updated:  5 October 2022/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team