The Short and Long-term Impact of International Migration on Human Capital Formation of the Left Behind

Despite different attitudes, Most economists stressed on the importance of human capital ,and its positive impact on the economic development process and the effectiveness of the physical production elements, these elements may not have that functionality without the human element. Thus, the human capital within education cycle education in capital formation is the most productive elements that can contribute to economic development. Economic growth theories suggest that technical progress increases in the long term and technical progress rapidly when a better educated workforce, hence the human capital information helps in technical progress and is a source of sustainable development. Moreover, current study aims to identify the human capital and the importance of investing in education, and how to build human capital formation by investing in people through education in Kurdistan region-Iraq. Besides, verify the hypothesis which suggests that increased spending in education contributes to the development of human capital being provides the basis for individual breakthrough by developing his skills and creativity to achieve economic and social development goals, and that expenditure on education in Kurdistan-Iraq achieved a marked quantitative change but did not play its role in developing human capital.

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Human-Capital Formation, Asymmetric Information, and the Dynamics of International Migration

The Economics of Globalization ◽

10.1017/cbo9780511619946.017 ◽

1999 ◽

pp. 333-370 ◽

Cited By ~ 4

Author(s):

Nancy H. Chau ◽

Oded Stark

Keyword(s):

Human Capital ◽

Asymmetric Information ◽

International Migration ◽

Capital Formation ◽

Human Capital Formation

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Unskilled Migration, Child labor and Human Capital Accumulation of Children in the Presence of Parental Absenteeism

THE LAHORE JOURNAL OF ECONOMICS ◽

10.35536/lje.2020.v25.i2.a5 ◽

2020 ◽

Vol 25 (2) ◽

pp. 119-138

Author(s):

Yumna Hasan ◽

Waqar Wadho

Keyword(s):

Human Capital ◽

Child Labor ◽

Capital Accumulation ◽

Capital Formation ◽

Relative Wage ◽

Sociocultural Factors ◽

Human Capital Formation ◽

Left Behind ◽

Children Left Behind ◽

The Impact

Temporary unskilled migration and the remittancesit generateshavethe potential to reduce child labor and improve educational outcomes in developing countries. However, recent literature points towards the adverse impact of the parental absenteeism on children left behind. We build a theoretical model to explore the joint impact of remittances and parental absenteeism on child labor and human capital formation of children left behind in the context of unskilled workers’ migration. We find threshold conditions for the relative wage of source to destination countriesbeyond which unskilled migration helps in reducing child labor and increasing human capital. Moreover, the threshold is endogenous and depends on the sensitivity of human capital formation to parental absenteeism relative to the child’s time spent on acquiring human capital. In a special case when the former is equal to the latter, the wages in the destination country should at least be twice as much as in the source country to have a detrimental (promoting) impact on child labor (human capital formation). Since the importance of parental absenteeism would depend on a variety of sociocultural factors such as marriage, presence of extended families, religious communities, and social networks, there will be heterogeneity in the impact of unskilled migration.

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