Abstract
Abstract Abstract Recent evidence suggests that aid induces migration. This result is nevertheless not very informative from a policy perspective since what counts in terms of welfare consequences is the composition of migration. In this paper we focus on education and study which of skilled or unskilled migration is more sensitive to aid. More specifically we investigate the possible channels through which aid might affect self-selection among international emigrants and find that aid induces positive selection by easing the movement of highly qualified workers. Interestingly, we find that technical cooperation and bilateral aid have a significant influence on skilled migration but do not seem to affect unskilled migration significantly. On the other hand, aid targeted to development enhancement affects both categories but seems to have a larger effect on the former. JEL codes F35, F22, C23
Highlights
The international mobility of workers is perceived by several authors as a key issue in economic development
Early-impact aid is budgetary support while long-run aid is related to infrastructure investments and social aid. iv) We focus on Chang et al (1999) and their criticism on the potential overstating in the level of assistance by Official Development Assistance (ODA)
6 Conclusions In this paper, using recently compiled panel data on international migration by education attainment, we analyze the impact of aid on the skill bias of migration, and on the skill composition of emigrants
Summary
The international mobility of workers is perceived by several authors as a key issue in economic development. To give a broad idea of the situation, estimates from the Organization for Economic Co-operation and Development (OECD, 2008), reveal that more than one half of OECD countries have a stock of immigrants that exceeds 10% of their total population. The desire of reducing low-skilled migration in OECD countries rests on the fact that low skilled immigration lowers the low-skilled wage in hosting countries (Borjas, 2003), and reduces the working possibilities for lowly qualified native workers (Borjas, 2006). It increases the net tax burden on the natives (Lee and Miller, 2000). Beine et al (2008) estimated that countries that are small, relatively poor and have high emigration rates suffer substantial net losses of human capital
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