This article studies the implications of highly skilled labor international migration in a two-
country dynamic stochastic general equilibrium model. The model considers three types of
workers: Science, Technology, Engineering, or Mathematics (STEM) workers, non-STEM
college educated workers, and non-college educated workers. Aggregate productivity in
each economy is a function of innovations, which can be produced only by STEM workers.
The model predicts (i) the existence of a wage premium of STEM workers relative to non …

This paper studies the implications of highly skilled labor international migration in a two-
country Dynamic Stochastic General Equilibrium model. The model considers three types of
workers: STEM workers, non-STEM college educated workers, and non-college educated
workers. Only high skilled workers can move internationally from the relative low productivity
(sending) country to the high productivity (host) country. Aggregate productivity in each
economy is a function of innovations, which can be produced only by STEM workers. The …