This note demonstrates that when developing countries remove barriers to migration and integrate their labour markets, children may be driven out of schools and into informal or paid employment in the comparatively rich countries. In industrialized countries, the same mechanism might force...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries'...