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Hung-Ju Chen and Xiangbo Liu
''International Migration, Skill Acquisition and Matching Frictions''
( 2015, Vol. 35 No.3 )
This paper investigates the impacts of the prospect of work abroad on a sending country’s labor market outcomes in a search and matching environment with endogenous skill acquisition. Our model allows firms to adjust their demand of labor to changes in the prospect of work abroad. We show that an increase in the probability of work abroad for skilled (unskilled) workers discourages job entry in the skilled (unskilled) labor market, and makes it more difficult for skilled (unskilled) workers to find employment. Therefore, such change may not always result in an increase in the fraction of skilled workers, depending on the value of work abroad.
Keywords: Brain drain, Labor search and matching, Migration, Skill.
JEL: F2 - International Factor Movements and International Business: General
J6 - Mobility, Unemployment, and Vacancies: General
Manuscript Received : May 13 2015 Manuscript Accepted : Jul 11 2015

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