IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-18-00301.html
   My bibliography  Save this article

Negative selection migration and education investment: theoretical investigation on the roles of remittances and the prospect of migration

Author

Listed:
  • Daichi Yamada

    (Graduate School of Economics and Business, Hokkaido University)

Abstract

This paper theoretically examines the effect of labor migration on education investment in migrant-sending countries, focusing on negative selection migration where unskilled workers migrate. Negative selection migration has two conflicting effects. On one hand, the prospect of children's future migration would reduce education incentives. On the other hand, parents' migration provides remittances and this could encourage education investment. This paper presents a simple model to simultaneously incorporate these two effects. The results show that, in countries where the quality of education is high, the positive effect of parents' remittances outweighs the negative effect of the prospect of future migration. However, in countries with poor education quality, the negative effect of the prospect plays the main role and reduces education investment. Improving the quality of education is vital for obtaining a positive consequence from negative selection migration.

Suggested Citation

  • Daichi Yamada, 2018. "Negative selection migration and education investment: theoretical investigation on the roles of remittances and the prospect of migration," Economics Bulletin, AccessEcon, vol. 38(3), pages 1292-1301.
    • Handle: RePEc:ebl:ecbull:eb-18-00301
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I3-P124.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February.
    2. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 1-25.
    3. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    4. Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010. "Remittances, Household Expenditure and Investment in Guatemala," World Development, Elsevier, vol. 38(11), pages 1626-1641, November.
    5. David McKenzie & Hillel Rapoport, 2011. "Can migration reduce educational attainment? Evidence from Mexico," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1331-1358, October.
    6. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
    7. Stark, Oded & Byra, Lukasz, 2012. "A back-door brain drain," Economics Letters, Elsevier, vol. 116(3), pages 273-276.
    8. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
    9. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    10. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
    11. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Narcisse Cha'Ngom & Christoph Deuster & Frédéric Docquier & Joël Machado, 2023. "Selective Migration and Economic Development: A Generalized Approach," LISER Working Paper Series 2023-06, Luxembourg Institute of Socio-Economic Research (LISER).
    2. Björn NILSSON, 2019. "Education and migration: insights for policymakers," Working Paper 23ca9c54-061a-4d60-967c-f, Agence française de développement.
    3. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    4. Anelí Bongers & Carmen Díaz-Roldán & José L. Torres, 2022. "Brain drain or brain gain? International labor mobility and human capital formation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(5), pages 647-671, July.
    5. Luca Marchiori & Patrice Pieretti & Benteng Zo, 2008. "Brain Drain, Remittances, and Fertility," Economie Internationale, CEPII research center, issue 115, pages 9-42.
    6. Hatton, Timothy J., 2014. "The economics of international migration: A short history of the debate," Labour Economics, Elsevier, vol. 30(C), pages 43-50.
    7. Koska, Onur A. & Saygin, Perihan Özge & Çağatay, Selim & Artal-Tur, Andrés, 2013. "International migration, remittances, and the human capital formation of Egyptian children," International Review of Economics & Finance, Elsevier, vol. 28(C), pages 38-50.
    8. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4363-4414, Elsevier.
    9. Marco Delogu & Frédéric Docquier & Joël Machado, 2018. "Globalizing labor and the world economy: the role of human capital," Journal of Economic Growth, Springer, vol. 23(2), pages 223-258, June.
    10. Khraiche, Maroula & Boudreau, James, 2020. "Can lower remittance costs improve human capital accumulation in Africa?," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1000-1021.
    11. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    12. Grossmann, Volker & Stadelmann, David, 2011. "Does international mobility of high-skilled workers aggravate between-country inequality?," Journal of Development Economics, Elsevier, vol. 95(1), pages 88-94, May.
    13. Antwi, James & Phillips, David C., 2013. "Wages and health worker retention: Evidence from public sector wage reforms in Ghana," Journal of Development Economics, Elsevier, vol. 102(C), pages 101-115.
    14. Udo Kreickemeier & Jens Wrona, 2017. "Two-Way Migration between Similar Countries," The World Economy, Wiley Blackwell, vol. 40(1), pages 182-206, January.
    15. Yui Suzuki & Yukari Suzuki, 2016. "Interprovincial Migration and Human Capital Formation in China," Asian Economic Journal, East Asian Economic Association, vol. 30(2), pages 171-195, June.
    16. Auriol, Emmanuelle & Demonsant, Jean-Luc, 2012. "Education and migration choices in hierarchical societies: The case of Matam, Senegal," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 875-889.
    17. Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, vol. 118(528), pages 631-652, April.
    18. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, May.
    19. Beine, Michel & Docquier, Frédéric & Oden-Defoort, Cecily, 2011. "A Panel Data Analysis of the Brain Gain," World Development, Elsevier, vol. 39(4), pages 523-532, April.
    20. Eggert, Wolfgang & Krieger, Tim & Meier, Volker, 2010. "Education, unemployment and migration," Journal of Public Economics, Elsevier, vol. 94(5-6), pages 354-362, June.

    More about this item

    Keywords

    Education investment; labor migration; negative selection; remittances;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I2 - Health, Education, and Welfare - - Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-18-00301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.