Authors: D'Artis Kancs, Pavel Ciaian
Addresses: European Commission (DG JRC), Wetstraat, Brussels 1049, Belgium; Catholic University of Leuven (LICOS), Deberiotstraat, Leuven 3000, Belgium; Economics and Econometrics Research Institute (EERI), Avenue de Beaulieu, Brussels 1160, Belgium. ' European Commission (DG JRC), Wetstraat, Brussels 1049, Belgium; Catholic University of Leuven (LICOS), Deberiotstraat, Leuven 3000, Belgium; Economics and Econometrics Research Institute (EERI), Avenue de Beaulieu, Brussels 1160, Belgium
Abstract: Recently, the EU Council adopted a new labour migration policy instrument – the EU Blue Cards (BC) – for attracting the highly skilled workers to the EU. The present paper examines the potential impacts, which BC may cause on less developed sending countries (LDC). Our results suggest that the EU BC will reduce human capital in LDC. In addition, BC will also have a negative impact on knowledge capital. These findings suggest that without appropriate policy responses, BC makes developing country growth prospects rather bleak than blue. Therefore, we propose and analyse alternative migration policy instruments for LDC. We find that policies implemented on the demand side of the skilled labour market are the most efficient. In contrast, policies that address the supply side of the skilled labour market are the least efficient, though they might be less costly to implement.
Keywords: knowledge capital; human capital; high-skill migration; innovative capital; economic growth; knowledge flow; EU; Council Directives; European Union; labour migration; migration policies; Blue Cards; European Labour Cards; conditions of entry; conditions of residence; third-country nationals; highly qualified employment; skilled workers; less developed countries; sending countries; policy responses; developing countries; growth prospects; policy instruments; demand side; labour markets; supply side; efficiency; implementation costs; public policy; economic policies; alternative paradigms.
International Journal of Public Policy, 2011 Vol.7 No.1/2/3, pp.134 - 160
Published online: 14 Jan 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article