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Developing countries are experiencing unprecedented levels of urbanization. Although most of these movements are motivated by economic reasons, they could affect the human capital accumulation of the children who follow their parents to the cities. This paper estimates the causal effect of permanently migrating as a child from a rural area to an urban area on human capital outcomes. To our knowledge, this paper is one of only several papers, especially in the context of a developing country, which is able to estimate the causal effect of migration. We utilize a recent survey of urban-rural migrants in Indonesia and merge it with a nationally representative survey to create a dataset that contains migrants in urban areas and non-migrants in rural areas who were born in the same rural districts. We then employ a measure of district-level propensity to migrate, calculated from the Indonesian intercensal survey, as an instrument. We find that childhood migration to urban areas increase education attainment by about 4.5 years by the time these individuals are adults. In addition, the childhood migrants face a lower probability to be underweight by about 15 percentage points as adults. However, we find no statistically significant effect on height, which is a measure of long-term nutritional intake, and we only find a weak effect on the probability to be obese. Therefore, our results suggest a permanent, positive, and large effect of childhood migration on education attainment and some health measures. In addition, our results can rule out any negative effect on health.
"Docquier and Rapoport focus on the consequences of skilled migration for developing countries. They first present new evidence on the magnitude of migration of skilled workers at the international level and then discuss its direct and indirect effects on human capital formation in developing countries in a unified stylized model. Finally they turn to policy implications, with emphasis on migration and education policy in a context of globalized labor markets. This paper-- a product of the Trade Team, Development Research Group-- is part of a larger effort in the group to measure and understand the implication of the brain drain as part of the International Migration and Development Program"-- World Bank web site.
Human capital formation is a fundamental requirement for countries' long term economic development and societal prosperity. This process can be enhanced or disrupted by internal factors such as migration and remittances, or external ones like wars. This thesis is interested in investigating both phenomena. The following questions are addressed: what is the impact of migrant remittances on human capital formation, do these private inflows induce any changes in the behavior of remittance-receivers towards education expenditure, and finally what is the short term micro-economic effect of armed conflicts on education in post war countries. In investigating these issues, focus is made on two perspectives: first youth, an active group in the society whose age matches up higher education levels and labor force entry simultaneously; second gender differentials both in terms of impact and behavior. The research explores new surveys from the Middle East, datasets that have not been analyzed previously from an education angle and that are not generally available to researchers. These datasets come from Jordan and Lebanon, two middle income non-oil producer countries. The thesis is composed of three independent essays. The first examines the impact of migrant remittances on human capital accumulation among youth in Jordan and highlights the various ways in which remittances influence education outcomes. The analysis takes a gender dimension and examines whether the effects and magnitude of such impact is different between males and females. The second essay considers remittances receipt, from both domestic and international sources, and examines their impact on Jordanian households' education spending patterns. Following the literature on intra-household bargaining and gender expenditure preferences, the analysis examines whether such impact is potentially different between male and female headed households. The third essay tackles the impact of the 2006 war on education attendance of youth in Lebanon. The chapter captures households' schooling responses in the aftermath of the war. By looking at the implications of a diversified array of damages sustained; reflecting physical, human, income and employment losses; the chapter examines possible linkages between the nature of the damage incurred and the manner and magnitude in which such damage affects education.
The first essay is The linkage between foreign direct investment and international migration. Immigration policy and policies regarding the flow of capital across borders are generally enacted separately. Such separation may not be appropriate if there are interactions between immigration and foreign direct investment (FDI). Although much research has focused on the determinants of international migration, little agreement has been made with respect to how FDI affects migration. In this paper, we attempt to clarify the influence of FDI on migration. We consider not only how aggregate FDI into country i affects migration from i to j but also how the FDI that i receives specifically from country j (which we denote as bilateral FDI) affects migration from i to j. We find that bilateral FDI stock has a positive and significant impact on the size of migrant stock through what we call an "ideological linkage". We show that this finding is robust across different estimation methods, including instrumental variables Tobit and Heckman selection models. We conclude that the influence of FDI on migration needs to be considered when designing economic policies. The second essay is Environmental quality and international migration. This essay examines the extent of which pollution is a factor that pushes people to migrate across borders. It provides an empirical analysis of the aspects of air quality and its unexplored role in the international migration. We allow pollution to affect migrants differently according to their gender and educational attainment. We also consider different types of air pollution such as sulfur dioxide and particulate matter. We then test for the interaction between environmental quality and income upon migration. We find that air pollution is a push factor but not necessarily for countries with very high incomes. We also find evidence supporting that there is a gender difference in the migration-environment association. Finally, the third essay is The effects of foreign universities on domestic human capital accumulation. In this essay, we focus on the impact of foreign direct investment in education (i.e., foreign universities opening up branches overseas) on human capital formation in the host countries. High ranking universities have the privilege to enter foreign market and usually enjoy subsidy from the host country. However, the entry of low quality foreign universities may have positive impact on domestic human capital accumulation with less uncertainty. In our model, we have three types of universities: high quality foreign universities located domestically, low quality foreign universities located domestically and domestic universities. Agents in the model represent students in the host country who decide upon their level of preparedness for a university education. As comparative statics exercises, we examine how effort changes when the slots of high quality or low quality foreign institutions change. Results from these comparative statics exercises could help a government choose the optimal size of high quality or low quality foreign universities where optimal means maximizing aggregate effort. We also examine the effect of foreign education premium on human capital accumulation. To the best of our knowledge, this is the first economics-based, theoretical study of this issue. We conclude that the entry of low quality foreign universities generally increases domestic human capital accumulation whereas allowing more high quality universities to enter the country produces less straightforward results. We also find that lowering the wage gap could have beneficial effects on human capital accumulation.
"The migration of labor from rural to urban areas is an important part of the urbanization process in developing countries. Even though it has been the focus of abundant research over the past five decades, some key policy questions have not found clear answers yet. To what extent is internal migration a desirable phenomenon and under what circumstances? Should governments intervene and, if so, with what types of interventions? What should be their policy objectives? To shed light on these important issues, the authors survey the existing theoretical models and their conflicting policy implications and discuss the policies that may be justified based on recent relevant empirical studies. A key limitation is that much of the empirical literature does not provide structural tests of the theoretical models, but only provides partial findings that can support or invalidate intuitions and in that sense, support or invalidate the policy implications of the models. The authors' broad assessment of the literature is that migration can be beneficial or at least be turned into a beneficial phenomenon so that in general migration restrictions are not desirable. They also identify some data issues and research topics which merit further investigation. "--World Bank web site.
Development and economic growth take place through the more efficient allocation of inputs into more productive uses. Human capital is a key input since it is the main asset of the majority of the population, especially of the poor, in developing countries. What factors attribute to existing barriers to physical and social mobility of human capital in developing countries? How has expanded global trade affected the allocation and accumulation of skill in developing economies? In three chapters, I study the education and internal migration in China and India, and provide answer to these questions.
Throughout the world, migration is an increasingly important and diverse component of population change, both at national and sub-national levels. Migration impacts on the distribution of knowledge and generates externalities and spillover effects. This book focuses on recent models and methods for analysing and forecasting migration, as well as on the basic trends, driving factors and institutional settings behind migration processes. Migration and Human Capital also looks at many current policy issues regarding migration, such as the creative class in metropolitan areas, the brain drain, regional diversity, population ageing, illegal immigration, ethnic networks and immigrant assimilation. With specific reference to Europe and North America, the book reviews and applies models of internal migration; analyses the spatial concentration of human capital; considers migration in a family context; and addresses the political economy of international migration. This book will be invaluable for researchers and policy makers in the fields of internal and international migration. It provides up-to-date readings for advanced courses that focus on migration and population change in a global context.
This publication considers a range of issues related to the international mobility of human capital (workers such as scientists, IT experts and entrepreneurs), mainly from a perspective of developing countries. These include: key international trends; the world distribution of science and technology resources; economic aspects of human capital migration; the debate regarding the 'brain drain or brain cycle' of human capital flows; scientific diasporas; entrepreneurial migration; the impact on global inequality and national development; greater knowledge sharing by developing countries.