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Cebolla and his co-author, Miyar, investigate the driving forces of highly skilled migration (HSM) in Europe, challenging the prevailing assumption that such migration is primarily motivated by labour market returns to education, downplaying the public welfare considerations proposed by Sjaastad in 1962. Through an empirical approach using longitudinal data from the European Labour Force Survey (2000-2014) merged with Eurostat and OECD indicators, Cebolla and Miyar attempt to answer the question: What attracts HSM? The hypothesis is that the attraction of temporary and long-term skilled migrants to European countries is not based on income alone but on other factors. Therefore, they used time series analysis with country-fixed effects for the investigation.
The research reveals that while returns to education attract temporary and long-term MSM equally, the impact of public welfare and taxation differs between these groups. Contrary to what Sjaastad proposed, the results suggest that generous welfare provisions do not necessarily deter skilled migration. On the contrary, they may incentivise the arrival of long-term settlers with high levels of human capital, challenging the notion that HSM is driven solely by income maximisation. This innovative approach sheds light on the different effects of various pull factors at different time horizons of skilled migration, calling for a reconceptualisation of the factors influencing HSM beyond mere economic considerations.
Additional References:
Sjaastad, L.A., 1962. The costs and returns of human migration. Journal of political Economy, 70(5, Part 2), pp.80-93.
The narrative of migration as a catalyst for innovation and economic growth resonates with Cebolla and Miyar's exploration of the drivers of highly skilled migration (HSM) and its implications in their research. Just as Cristina Talacko's entrepreneurial journey from Brazil to Australia exemplifies the transformative potential of skilled migration, the broader discussion in The Economist article underscores how migrants bring new perspectives, knowledge, and connections, driving innovation and productivity in their host countries. The emphasis on skilled migrants as drivers of dynamic gains, rather than merely static economic benefits, mirrors the analysis of HSM pull factors, such as labour market opportunities and public welfare configurations.
The recognition of migrants' contributions to their countries of origin through remittances and knowledge exchange reflects a fuller understanding of the impact of migration, in line with the argument that concerns about brain drain oversimplify the complex dynamics of human capital flows. Ultimately, both texts agree skilled migration is a multifaceted phenomenon with profound implications for global connectivity, economic development, and societal transformation.
Can you explain in more detail the process of merging information from the European Labour Force Survey with selected Eurostat and OECD country indicators?
How were pull factors, particularly labour market returns to education and public welfare configurations, operationalised, and measured in the analysis?