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 perspective of international migration, that is,...

The intratemporal redistribution feature of the welfare state makes it an attractive destination for immigrants, particularly for low-skill immigrants. George Borjas (1994) reports that foreign-born households in the United States accounted for 10 percent of households receiving public...