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High‐Skilled Migration And The Exertion Of Effort By The Local Population

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  • Gil S. Epstein
  • Astrid Kunze
  • Melanie E. Ward
Abstract
The optimal design of immigration policy is a topical issue, both in the policy debate and the economic literature. In this paper, we present empirical evidence from a firm level dataset collected in 2000 on the demand for high‐skilled workers, including foreign workers, in Europe and its determinants. Our major findings are that the fraction of high‐skilled workers recruited from the international labour market is very small, and that foreign and domestic workers are very similar in terms of their formal education (measured by specialization subject) and their job characteristics. We suggest an efficiency wage model to explain why firms recruit foreign workers in small numbers, and why they are willing to pay immigrants the same wage as local workers, whilst at the same time also paying for their moving costs, despite the similar human capital profile of immigrants to domestic workers.

Suggested Citation

  • Gil S. Epstein & Astrid Kunze & Melanie E. Ward, 2009. "High‐Skilled Migration And The Exertion Of Effort By The Local Population," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(3), pages 332-352, July.
    • Handle: RePEc:bla:scotjp:v:56:y:2009:i:3:p:332-352
    DOI: 10.1111/j.1467-9485.2009.00487.x
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    1. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
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    3. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute of Labor Economics (IZA).
    4. Rachel Griffith, 1999. "Using the ARD establishment level data to look at foreign ownership and productivity in the UK," IFS Working Papers W99/06, Institute for Fiscal Studies.
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    13. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(2), pages 153-168, May.
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    1. repec:zbw:rwidps:0011 is not listed on IDEAS
    2. Gil S. Epstein, 2013. "Frontier issues of the political economy of migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 22, pages 411-431, Edward Elgar Publishing.
    3. Thomas K. Bauer & Astrid Kunze, 2004. "The demand for high-skilled workers and immigration policy," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(1), pages 77-88.
    4. Thomas Bauer & Astrid Kunze, 2003. "The Demand for High-skilled Worker and Immigration Policy," RWI Discussion Papers 0011, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    5. Bossler, Mario, 2013. "Recruiting abroad: the role of foreign affinity and labour market scarcity," IAB-Discussion Paper 201319, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Michael Landesmann & Mario Liebensteiner & Robert Stehrer, 2010. "Migrants and Economic Performance in the EU15: their allocations across countries, industries and job types and their (productivity) growth impacts at the sectoral and regional levels," FIW Research Reports series II-009, FIW.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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