With having in mind the effect of high- and low-skilled migration for economic prosperity, this study empirically tests with immigration data from 20 countries from the Organisation for Economic Co-operation and Development (OECD) from 1985 to 2010 the effect of inequality in a receiving country on high- and low-skilled migration to this country, so that the research question that this study seeks to answer is: Does economic inequality influence the immigration of high- and low-skilled individuals?
In the broad context of the study of economic inequality within societies, one of the most prominent topics is the relationship between inequality and economic prosperity of a country, which is studied by many authors such as Kenworthy (2003) or Wren (2013). With this study, I want to contribute to this research by focusing on one possible mechanism within the inequality-economic prosperity relationship, namely migration. Attracting and retaining highly qualified people is crucial to the development of a knowledge-based economy in which ideas and innovation drive technological and social progress. Moreover, the perception and acceptance of immigration within a society are largely shaped by the skill level of immigrants.
Understanding how high-skilled people and in contrast, how low-skilled people choose their country of destination when migrating is, therefore, crucial – for sending and receiving countries alike. Migration and especially cross-border migration is a highly complex topic and the individual decision to migrate is influenced by a multitude of drivers. However, when looking at the differences between high- and low-skilled migrations, economic drivers are especially important, because more than for other drivers such as political or social drivers they affect high- and low-skilled people differently.
Assuming that migration is at least partly determined by the desire to realize economic opportunities abroad and assuming that high-skilled migrants should benefit from the opportunities in less equal destination countries, while low-skilled migrants should benefit from a compressed wage distribution in more equal destination countries, a stream of literature, building on Borjas (1987), studies the relationship between inequality in sending and receiving countries and the consequences for high- and low-skilled migration.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review and Theory
- Empirics
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper aims to investigate the influence of economic inequality on the immigration of high- and low-skilled individuals. It contributes to the broader study of economic inequality and its relationship with economic prosperity by focusing on migration as a potential mechanism within this relationship.
- The impact of high-skilled immigrants on economic prosperity
- The role of economic drivers in shaping migration decisions, particularly for high- and low-skilled individuals
- The relationship between inequality in receiving countries and the skill-level of immigrants
- The applicability of the Roy-Borjas model of migrant selection in explaining migration patterns
- The influence of income distribution on the self-selection of high- and low-skilled migrants
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter sets the stage by outlining the study's objectives, its relevance to the broader research on economic inequality, and the importance of understanding migration patterns in relation to skill levels. It highlights the crucial role of attracting and retaining highly qualified individuals in fostering economic growth and the need to understand how both high- and low-skilled individuals choose their destinations when migrating.
- Literature Review and Theory: This chapter delves into the relevant literature on the economic impact of high-skilled immigrants, the reasons behind migration, and the study of inequality. It builds on existing theories, such as the push-pull model of migration and the concept of migration aspirations, to frame the research question and provide a theoretical foundation for the study. The chapter also discusses the Roy-Borjas model of migrant selection, which suggests that high-skilled migrants are drawn to less equal countries, while low-skilled migrants prefer more equal ones. This model provides a theoretical framework for analyzing the relationship between income distribution in receiving countries and the skill level of immigrants.
Schlüsselwörter (Keywords)
The key concepts and terms explored in this research paper include economic inequality, economic prosperity, migration, high-skilled immigration, low-skilled immigration, Roy-Borjas model, migrant selection, income distribution, and self-selection.
- Quote paper
- Simon Valentin (Author), 2019, Does economic inequality influence the immigration of high- and low-skilled individuals?, Munich, GRIN Verlag, https://www.grin.com/document/497772