[en] This paper analyzes the effects of skilled migration and remittances on fertility decisions
at origin. We develop an overlapping generations model which accounts for
endogenous fertility and education. Parents choose the number of children they want
to raise and decide upon how many children obtain higher education. Only high skilled
individuals migrate with a certain probability and remit to their parents. We find that an
increase in the probability to emigrate leads both high and low skilled parents to send
more children to obtain higher education. However the effect on the number of children
is ambiguous. In a further analysis, we calibrate the model to match different characteristics
of a developing economy. When the destination country relaxes the immigration
restrictions, more high skilled individuals leave the origin country. The result is that,
at origin, increased high skilled emigration reduces fertility and fosters human capital
accumulation.
Disciplines :
Macroeconomics & monetary economics
Author, co-author :
Marchiori, Luca
Pieretti, Patrice ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Zou, Benteng ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
