Chapter 11. High-Skilled Immigration in a Globalized Labor Market

The economics literature on the international migration of skilled workers is reviewed and recent policy trends are evaluated. The theoretical implications of skilled migration are discussed within the context of the benefits to the skilled immigrant, the sending country, and the receiving country. The types of immigrant selection mechanisms are also detailed, with emphasis on their advantages and disadvantages. The recent immigration policies of a number of major immigrant-receiving countries such as Canada, the US, and Australia are critically evaluated. The expanded use of skilled temporary foreign workers and international students is discussed, as is and the recent emergence of two-step immigration policies that favor temporary migrants already in the country as sources of permanent immigration. An overview of key results in the literature on the economic performance of skilled immigrants is presented with a particular focus on the wage returns to skill both in terms of regulated and unregulated occupations. The implications of competition among the growing number of countries with skilled immigration policies are considered.