Abstract
This paper provides a novel explanation of "educated unemployment", which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that "educated unemployment" is caused by the prospect of international migration, that is, by the possibility of a "brain drain". In addition, the analysis shows that a developing country may end up with more educated workers despite the brain drain and educated unemployment.
Original language | English |
---|---|
Pages (from-to) | 76-87 |
Number of pages | 12 |
Journal | Journal of Development Economics |
Volume | 83 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 May 2007 |
Keywords
- "Educated unemployment"
- Beneficial brain drain
- Human capital formation
- International migration