DP12403 The Selection of High-Skilled Emigrants

Author(s): Nicolai Netz, Matthias Parey, Jens Ruhose, Fabian Waldinger
Publication Date: October 2017
Keyword(s): emigrants, high-skilled, migrant selection, migrants
JEL(s): F22, I23, J61, O15
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12403

We measure selection among high-skilled emigrants from Germany using predicted earnings. Migrants to less equal countries are positively selected relative to non-migrants, while migrants to more equal countries are negatively selected, consistent with the prediction in Borjas (1987). Positive selection to less equal countries reflects university quality and grades, and negative selection to more equal countries reflects university subject and gender. Migrants to the United States are highly positively selected and concentrated in STEM fields. Our results highlight the relevance of the Borjas model for high-skilled individuals when credit constraints and other migration barriers are unlikely to be binding.