How admitting migrants with any skills can help overcome a shortage of workers with particular skills

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Author
Stark, Oded
Byra, Łukasz
Date of Publication
11.2018
Publisher
Center for Development Research (ZEF), University of Bonn
Publisher Location
Bonn
Metadata
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Citable Link (Handle URI)
https://hdl.handle.net/20.500.11811/12116
Abstract
A country that experiences a shortage of workers with particular skills naturally considers two responses: import skills or produce them. Skill import may result in large-scale migration, which will not be to the liking of the natives. Skill production will require financial incentives, which will not be to the liking of the ministry of finance. In this paper we suggest a third response: impose a substantial migration admission fee, “import” fee-paying workers regardless of their skills, and use the revenue from the fee to subsidize the acquisition of the required skills by the natives. We calculate the minimal fee that will remedy the shortage of workers with particular skills with fewer migrants than under the skill “import” policy.
Subjects
Skill heterogeneity, Production externalities, Market inefficiency, Shortage of particular skills, Social planner’s choice, “Import” of skills, migration admission fee, Skill acquisition subsidy
Classification (DDC)
300 Sozialwissenschaften, Soziologie, Anthropologie
320 Politik
330 Wirtschaft
First Publication
https://www.zef.de/fileadmin/user_upload/ZEF_DP_266_OS.pdf
Part of Series
ZEF-Discussion Papers on Development Policy ; 266
Stark, Oded; Byra, Łukasz: How admitting migrants with any skills can help overcome a shortage of workers with particular skills. Bonn: Center for Development Research (ZEF), University of Bonn, 2018. In: ZEF-Discussion Papers on Development Policy, 266.
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12116
@techreport{handle:20.500.11811/12116,
author = {{Oded Stark} and {Łukasz Byra}},
title = {How admitting migrants with any skills can help overcome a shortage of workers with particular skills},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2018,
month = nov,
series = {ZEF-Discussion Papers on Development Policy},
volume = 266,
note = {A country that experiences a shortage of workers with particular skills naturally considers two responses: import skills or produce them. Skill import may result in large-scale migration, which will not be to the liking of the natives. Skill production will require financial incentives, which will not be to the liking of the ministry of finance. In this paper we suggest a third response: impose a substantial migration admission fee, “import” fee-paying workers regardless of their skills, and use the revenue from the fee to subsidize the acquisition of the required skills by the natives. We calculate the minimal fee that will remedy the shortage of workers with particular skills with fewer migrants than under the skill “import” policy.},
url = {https://hdl.handle.net/20.500.11811/12116}
}

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