Selective Migration and Economic Development: A Generalized Approach

Abstract

International migration is a selective process with ambiguous effects on human capital and economic development in sending countries. We establish the theoretical microfoundations of the relationship between selective emigration and human capital accumulation in a multicountry context. We embed this migration–education nexus into a development accounting framework to quantify the effects of migration on development and inequality. Selective emigration stimulates human capital accumulation and income in most origin countries. The effect varies according to the level of development, the dyadic structure of migration costs, and education policies. Emigration significantly reduces the number of people living in extreme poverty.