Lesson 13 bis. The effect of migration in the sending countries The human capital. Alessandra Venturini The Economics of Migration

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1 Lesson 13 bis The effect of migration in the sending countries The human capital Alessandra Venturini The Economics of Migration 1

2 Population is an asset for development Always? When? Relationship between population and resources: Capital, land GOVERNANCE 2

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4 The debate on brain drain is complex Short run Long run Alessandra Venturini Economics of immigration 2016

5 1.Stylized facts on Skilled migration FewOECD countriesgain, most OECD countries lose HS individuals Only US,CA an AUS are net gainers Inflows of HS >outflows of HS The EU countriesloosers(exceptions BE, LX, SWI, NOR) 5

6 Stock of migrants by origin country in main destination areas in 2000 (Source: Doqcuier & Marfouk) Africa Arab Gulf Australia, USA Canada, New Zeland EU 6 Morocco Algeria Tunisia Libya Egypt Jordan Syria OPT Lebanon Sudan Chad Mali Mauritania Niger Senegal Countries Sto ck o f Immig ran ts

7 Share of highly skilled migrants by country of origin to main destination areas in 2000 (Source: Docquier & Marfook) 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% Australia, USA Canada, New Zeland ARAB GULF Africa 20.00% 10.00% 0.00% A lgeria C had E gypt Jordan Lebanon Libya Mali Mauritania Morocco N iger OP T S enegal S udan S yria Tunisia EU 7

8 Immigrants are evenmore concentratedatthe top of skill distribution 8

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10 Why HS Migrants are mainly going to USA, Canada, Australia and New Zealand? Legislation Migration policy-point system Economic structure of destination countries- HS jobs available Wage premium- USA High wage 5 times low wage France and Netherland 2.9, Demark and Switzerland 2.7 Belgium and Sweden 2.4 Education system Language 1 10

11 Bothdestinationand sending countriesare in searchof skills for similarreasons

12 Brain drain and brain gain 1 12

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14 In this revisionist approach to the analysis of the brain drain, skilled migration may turn into a brain gain even if no account is taken of the potentially positive effects on the home country of remittances and return migration MPC 14

15 A case studyon High skilled migration From the MENA and SSA and feweastern Countries *Destination 1 15

16 Stock of migrants by origin country in main destination areas in 2000 (Source: Doqcuier & Marfouk) Stock of Immigrants Africa Arab Gulf Australia, USA Canada, New Zeland EU Morocco Algeria Tunisia Libya Egypt Jordan Syria OPT Lebanon Sudan Countries Chad Mali Mauritania Niger Senegal 1 16

17 How many? The number And the measureof Brain drain Share of HSM of total HS (at home and abroad) 1 17

18 Fig.4.2 Share of migrants to home labour force by skills around 2000 (Source: Doqcuier & Marfouk) Algeria Chad Egypt Jordan Lebanon Libya Mali Mauritania Morocco Niger OPT Senegal Total All - Prim All - Sec All - Ter Brain Drain Sudan Syria Tunisia 1 18

19 4. Brain drain Fig.1.6 Share of migrants to home labour force by skills in 2000 (Source:Docquier-Marfouk, 2006) 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 Total All - Ter Brain Drain MPC 19

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21 Is Brain wastetaking place only among third national countries? 2 1

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23 Why HS migration takesplace? 1. Demand side 2. Supply side 3. Mismatch between Supply and Demand (HS supply > HS Demand) (quality of education & social versus hard sciences) On the Supply side: Economic reasons A) Unemployment among HS B) Reduction of real income per capita (Moldova) C) Large informal sector (60% in Egypt, 77-87% Mauritania) D) Decline in the size of public sector (Egypt, Morocco) E) Low return on tertiary education (Egypt) On the Supply side: Political reasons Political instability in Palestine, Lebanon, Sudan, Jourdan 2 23

24 Questions Is the educational policy appropriate? 2 24

25 Over-education& Over-occupation Migrants in 3 levelof education: low, medium and high level of job-skill: low, medium, high 2 25

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28 Delphine Perrin 20/04/2016 MPC 08:28 28

29 Paradox:Paradox The American dream seems reversed, In Europe uneducated migrants can more easily upgrade 2 29

30 Recent trends in intra-eu mobility (4) -3/5 of Southern movers are highly educated (vs1/5 among unemployed in South) - increase in over-qualification -though highest rate is among EU-12 movers (>T.C.N.) with more than 50% Over-qualification rate among recently established foreigners by group of nationality (in % of all highly educated in employment) Source: Eurostat, LFS and DG EMPL calculations. Social Europe

31 Integration pattern Structure of the Labour market Integration Country of origin State and associations Institution of the LM MPC

32 Course title Differences in EDUCATION among countries in: 1. Tertiary education 2. Quality of education 3. Investment in public/private education 4. Public expenditure

33 Delphine Perrin 20/04/2016 MPC 08:28 33

34 1. Tertiary Education MPC 34

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