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Highly Skilled International Migration, STEM Workers, and Innovation

Author

Listed:
  • Anelí Bongersy

    (Universidad de Málaga)

  • Carmen Díaz-Roldán

    (Universidad de Castilla-La Mancha)

  • José L. Torres

    (Universidad de Málaga)

Abstract

This paper studies the implications of highly skilled labor international migration in a two-country Dynamic Stochastic General Equilibrium model. The model considers hree types of workers: STEM workers, non-STEM college educated workers, and non-college educated workers. Only high skilled workers can move internationally from the relative low productivity (sending) country to the high productivity (host) country. Aggregate productivity in each economy is a function of innovations, which can be produced only by STEM workers. The model predicts i) the existence of a wage premium of STEM workers relative to non-STEM college educated workers, ii) this wage premium is higher in the destination country and increases with positive technological shocks, iii) a reduction in migration costs increases output, wages and total labor in the destination country, with opposite effects in the country of origin, and iv) high skilled immigrants reduce skilled native labor and do not affect unskilled labor.

Suggested Citation

  • Anelí Bongersy & Carmen Díaz-Roldán & José L. Torres, 2018. "Highly Skilled International Migration, STEM Workers, and Innovation," Working Papers 18-02, Asociación Española de Economía y Finanzas Internacionales.
    • Handle: RePEc:aee:wpaper:1802
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    More about this item

    Keywords

    STEM workers; Migration; Dynamic Stochastic General Equilibrium models; Innovation;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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