In this paper we set up a simple theoretical framework to study the possible source country effects of skilled labor emigration. We show that for given technologies, labor market integration necessarily lowers GDP per capita in a poor source country of emigration, because it distorts the...

With endogenous skills and given technology, labor market integration necessarily lowers welfare of the left-behind in a poor sending country, even if all agents face identical emigration probabilities. This is in sharp contrast to the case of exogenous skill supply.

In this paper we set up a simple theoretical framework to study the possible source country effects of skilled labor emigration from developing countries. We show that for given technologies, labor market integration necessarily lowers GDP per capita in a poor source country of emigration,...

With endogenous skills and given technology, labor market integration necessarily lowers welfare of the left-behind in a poor sending country, even if all agents face identical emigration probabilities. This is in sharp contrast to the case of exogenous skill supply

Summary In this paper we set up a simple theoretical framework to study the possible source country effects of skilled labor emigration from developing countries. We show that for given technologies, labor market integration necessarily lowers GDP per capita in a poor source country of...

We set up a general equilibrium model with heterogeneous firms to study the interaction between wage bargaining and foreign direct investment. Thereby, we highlight the incentives of firms to invest abroad in order to improve their bargaining position vis-á-vis local unions and we show how...