Many countries accept skilled workers to increase domestic human capital.
To complement this policy, some countries are enthusiastic about accepting study migrants. They provide international students with the education and induce students to remain in the host country after education. International students tend to build a large amount of human capital in order to get a skilled job in the host country or in other foreign countries after education.
Japan has been limiting the job that foreigners can take to the skilled one. However, we made a major change in the immigration policy in 2018. In particular, we redefined the 'skilled' job. Newly-defined skilled jobs include jobs that do not require high skill.
Given a situation where international students can be employed for the job that is not necessary high skill after education, do they still keep an incentive to build large human capital?
They do not have to study hard to get a skilled job. Even if they did not study well, they may be able to get a job formally in Japan if they are ok with the unskilled one!
Any ideas? I wonder if you have seen any analytical models to examine this issue (of course, this problem cannot be solved fully without an empirical investigation.)
Thank you.
People emigrate for one or more of several reasons: to improve their economic conditions, to escape persecution, to join members of their families already there. Whatever the cause, migration forces out distinct qualities. The willing migrant is an above-average individual, self-selected for risk-taking and creativity, and autonomous with a firm belief in him/herself. As for the unwilling migrant, he/she will have to develop such strengths to meet the awesome challenge of changing one's culture and language.
Dear Olivier, many thanks for your interest in my question and the comment.
Yes, they have various reasons for emigration, not just to get the skilled job and earn a lot of money. Akira
Previous studies on the subject indicates immigrants and natives are nearly perfect substitutes within broad skill categories. However, effect of emigrant depressed the wages of native dropouts by as much as 3 percent and can account for possibly as much as 24 percent of the increase in the college-high school wage differential during the decade. (Jaeger, David. 1996) globalization of the business has motivated the skill workforce mobilization across the nation and resulted into balancing the human skill among the nations with skill differences and we can agree that it has helped a lot in building human capital of the countries.
Akira, this is a pertinent and internationally relevant research topic to investigate. Inasmuch as other analytical tools on human capacity/skills development may obtain on related issues, I have found the following papers useful to what you may be thinking of doing:
McCowan, T. (2016). Universities and the post-2015 development agenda: an analytical framework. Higher Education, 72(4), 505-523.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal, 55(6), 1264-1294.
Abdullah, L., Jaafar, S., & Taib, I. (2013). Ranking of human capital indicators using analytic hierarchy process. Procedia-Social and Behavioral Sciences, 107(1), 22-28.
Bhaskar-Shrinivas, P., Harrison, D. A., Shaffer, M. A., & Luk, D. M. (2005). Input-based and time-based models of international adjustment: Meta-analytic evidence and theoretical extensions. Academy of management Journal, 48(2), 257-281.
Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of business venturing, 26(3), 341-358.
I'd be interested in the developments. Good luck.
Dear Dhani, thank you for your interest and comment on my question. Yes, human capital has moved across countries due to globalization and it had a balancing effect. Accepting study migrants is beneficial to the host country.
However, availability of unskilled jobs to foreigners may reduce their effort to build human capital while receiving education as study migrants. Also, if they get unskilled jobs, wage disparity between skilled and unskilled jobs may widen.
I am looking at the negative side of mobility.
Thank you.
Dear John, I appreciate your comment and references. This is a cross-disciplinary issue. Although I am an economics guy, it will be necessary to look at papers in other fields.
Thank you again for providing me with valuable information and your encouraging words.
Akira
Interesting question Akira Shimada . Would be interested to know as well.
Dear Md Atikur, I am happy that you drew your attention to my question.
Japan has targeted to accept foreign students by 0.3 million and it has already accomplished this objective. As of May 2019, there are 312, 214 according to the JASSO’s statistics. Nearly 40 per cent are from China.
They are able and enthusiastic to study, but many of them have to do the part-time unskilled job to make ends meet (Liu-Farrer, 2011). Even after education with sufficient human capital, it is not easy for them to enter the skilled labour market in Japan.
Besides, due to the major change in the immigration policy, they can now be formally employed as ‘skilled’ workers that do need high skill.
What will happen to their incentive to accumulate human capital? I wonder if our immigration policies on labour and students are consistent or not.
Akira
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