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.
|Number of pages||12|
|Journal||Journal of Development Economics|
|Publication status||Published - 1 May 2007|
- "Educated unemployment"
- Beneficial brain drain
- Human capital formation
- International migration