International Migration, Imperfect Information, and Brain Drain

Reprint No. 2013:13

Author(s): Vianney Dequiedt and Yves ZenouYear: 2013 Title: Journal of Development Economics Volume (No.): 101 (March) Pages: 117–132
Online article (restrictions may apply)

We consider a model of international migration where skills of workers are imperfectly observed by firms in the host country and where information asymmetries are more severe for immigrants than for natives. Because of imperfect information, firms statistically discriminate high-skilled migrants by paying them at their expected productivity. The decision of whether to migrate or not depends on the proportion of high-skilled workers among the migrants. The migration game exhibits strategic complementarities,which, because of standard coordination problems, lead to multiple equilibria. We characterize them and examine how international migration affects the income of individuals in sending and receiving countries, and of migrants themselves.We also analyze under which conditions there is positive or negative self-selection of migrants.

Dequiedt, Vianney and Yves Zenou (2013), "International Migration, Imperfect Information, and Brain Drain". Journal of Development Economics 101(March), 117–132.

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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