Massive Migration and its Effect on Human Capital and Growth: The Case of Western Balkan and Central and Eastern European Countries

By: Landesmann, Michael.

Contributor(s): Mara, Isilda.

Material type: materialTypeLabel

BookSeries: wiiw Balkan Observatory Working Papers: 124Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2016Subject(s): migration | brain drain | brain gain | economic growth | human capitalCountries covered: CEE | Western Balkanswiiw Research Areas: Labour, Migration and Income DistributionClassification: F22 | J24 | O15 | O40 Online resources: Click here to access online Summary: Abstract We analyse the effect of massive migration particularly from the Western Balkans and the Central and Eastern European countries on human capital and growth. In our analysis, we use a system of three equations to estimate simultaneously the effect of migration on human capital and on growth. An important driver of migration is chain migration, as well as the unemployment and income differentials between developing and developed countries. Overall, our findings suggest that migration of highly skilled from the Western Balkan and Central Eastern European countries has been beneficial to economic growth and income convergence of these countries. Our analysis supports the positive impact of low-skilled migration on the composition of human capital in the source countries.

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	Paper	WIIW Library				124 (Browse shelf(Opens below))					Available			1000010004073

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Previous	121 Introducing Railway Time in the Balkans: Economic eﬀects of railway construction in Southeast Europe and beyond since the early 19th century until present days	122 A Narrative Explanation of Breakpoints and Convergence Patterns in Yugoslavia and its Successor States 1952-2015	123 Backwardness, Industrialisation and Economic Development in Europe	124 Massive Migration and its Effect on Human Capital and Growth: The Case of Western Balkan and Central and Eastern European Countries	125 The Transfer and Adjustment Problems in the Balkans	126 International Trade in Western Balkan Countries: Analysis Based on the Gravity Model	/13 Charting Ways Out of Europe’s Impasse – A Policy Memorandum	Next

Abstract

We analyse the effect of massive migration particularly from the Western Balkans and the Central and Eastern European countries on human capital and growth. In our analysis, we use a system of three equations to estimate simultaneously the effect of migration on human capital and on growth. An important driver of migration is chain migration, as well as the unemployment and income differentials between developing and developed countries. Overall, our findings suggest that migration of highly skilled from the Western Balkan and Central Eastern European countries has been beneficial to economic growth and income convergence of these countries. Our analysis supports the positive impact of low-skilled migration on the composition of human capital in the source countries.

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