Abstract

The emphasis on human capital formation as a means to achieve increased productivity and economic growth lead many countries to develop immigration policies that favored skilled worker migration from less developed countries. In the recent decades, the increased demand from developed countries for high-skilled labor caused a surge in the rate of high-skill emigration. The increased circulation of skilled migrants from less developed to developed countries brings about many complex economic implications for both sending and host countries. Drawing from brain drain literature that focuses on emigration prospects and human capital formation in sending countries, this paper develops a game theoretic model that looks at the strategic interaction between prospective emigrants and the home country. Congruent with literature, theoretical results show that better emigration prospects induce investment in education in native workers, which under certain circumstances can lead to human capital accumulation in the developing country.

Advisor

Moledina, Amyaz

Second Advisor

Bowen, Jennifer

Department

Economics; Mathematics

Publication Date

2017

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2017 Ruben Aguero Quinteros