a brain gain with a brain drain abstract we study human capital depletion and formation in an economy open to out migration as opposed to an economy which is closed under the assumption of asymmetric information the enlarged opportunities and the associated different structure of incentives can give rise to a brain gain in conjunction with a brain drain migration by high skill members of its workforce notwithstanding the home country can end up with a higher average level of human capital per worker

emigration and wages in source countries evidence from mexico abstract this paper examines empirically the effect of mexican emigration to the united states on wages in mexico using data from the mexican and us censuses from 1970 to 2000 the main result in the paper is that emigration has a strong and positive effect on mexican wages there is also evidence for increasing wage inequality in mexico due to emigration simple welfare calculations based on a labor demand supply framework suggest that the aggregate welfare loss to mexico due to emigration is small however there is a significant distributional impact between labor and other factors

how important is selection experimental vs non experimental measures of the income gains from migration measuring the gain in income from migration is complicated by non random selection of migrants from the general population making it difficult to obtain an appropriate comparison group of non migrants this paper uses a migrant lottery to overcome this problem providing an experimental measure of the income gains from migration new zealand allows a quota of tongans to immigrate each year with a lottery to choose among the excess number of applicants a unique survey conducted by the authors in these two countries allows experimental estimates of the income gains from migration by comparing the incomes of migrants to those who applied to migrate but whose names were not drawn in the lottery after allowing for the effect of non compliance among some of those whose names were drawn the authors also conducted a survey of individuals who did not apply for the lottery comparing this non applicant group with the migrants enables assessment of the degree to which non experimental methods can provide an unbiased estimate of the income gains from migration they find evidence of migrants being positively selected in terms of both observed and unobserved skills as a result non experimental methods are found to overstate the gains from migration by 9 to 82 percent a good instrumental variable works best while difference in differences and bias adjusted propensity score matching also perform comparatively well

no man left behind effects of emigration prospects on educational and labour outcomes of non migrants the development impacts of emigration are largely determined by the education of those who stay behind departure of workers leads to a direct loss of human capital but opportunities for emigration also raise expected returns to education i examine these effects by considering the introduction of education as a selection criterion to recruit nepalese men in the british army this change raised educational investments by 1 15 years and increased the average education of men living in nepal even after allowing for emigration despite not being selected in the british army or emigrating elsewhere these non migrants benefited directly from additional schooling

a framework to update hofstede s cultural value indices economic dynamics and institutional stability this study offers an update of the hofstede cultural value dimensions we argue that changes in economic conditions are the source of cultural dynamics while the endurance of institutional characteristics provides the foundation for cultural stability it is found that national wealth measured by gdp per capita has a curvilinear relationship with individualism long term orientation and power distance scores relatively speaking uncertainty avoidance and masculinity mainly reflect some rather stable institutional traditions such as language religion climate ethnic homogeneity and legal origin and are less likely to change over time

the globe debate back to relevance this is a critical summary review of the debate about the global leadership and organizational behavior effectiveness globe study in jibs and other journals between november 2006 and the present issue several contributors did not realize that globe used three essential constructs taken from my publications in a sense entirely different from mine values practices and organizational culture not recognizing the ensuing confusion they had no answer for the question in my 2006 review what did globe really measure if you do not know what you are talking about you can continue arguing for ever beyond the fuzziness of what is measured the debate leaves us with an even more fundamental question what is the use of the globe dimensions

brain drain and human capital formation in developing countries winners and losers using new data on emigration rates by education level we examine the impact of brain drain migration on human capital formation in developing countries we find evidence of a positive effect of skilled migration prospects on gross human capital formation in a cross section of 127 countries for each country of the sample we then estimate the net effect of the brain drain using counterfactual simulations countries combining relatively low levels of human capital and low emigration rates are shown to experience a beneficial brain drain and conversely there are more losers than winners and the former tend to lose relatively more than what the latter gain

brain drain and economic growth theory and evidence we focus on the impact of migration prospects on human capital formation and growth in a small open developing economy we assume that agents are heterogeneous in skills and take their educational decisions in a context of uncertainty regarding future migrations we distinguish two growth effects an ex ante brain effect migration prospects foster investments in education because of higher returns abroad and an ex post drain effect because of actual migration flows the case for a beneficial brain drain bbd emerges when the first effect dominates i e when the average level of human capital is higher in the economy opened to migrations than in the closed economy we derive the theoretical conditions required for such a possibility to be observed using cross section data for 37 developing countries we find that the possibility of a bbd could be more than a theoretical curiosity

brain drain informality and inequality a search and matching model for sub saharan africa abstract this paper revisits the effect of brain drain on development and inequality using a two sector model with formal and informal labor markets contrary to existing studies we use a search and matching setting that allows to endogenize the employment structure and the wage differentials between different skill groups in the same sector and between workers with identical skills employed in different sectors theoretically the brain drain induces ambiguous welfare effects for those left behind as the potential loss gain depends on the parameters of the model we thus parameterize our model on 33 sub saharan african countries and produce comparative results for each of them we find that skilled emigration induces heterogeneous welfare losses for the low skilled population the size of these losses varies between 0 2 and 8 and is influenced by the parameters of the production and education technologies the results are fairly robust to identifying assumptions to the inclusion of technological externalities and to the endogenization of training decisions

underinvestment in a profitable technology the case of seasonal migration in bangladesh hunger during pre harvest lean seasons is widespread in the agrarian areas of asia and sub saharan africa we randomly assign an 8 50 incentive to households in rural bangladesh to temporarily out migrate during the lean season the incentive induces 22 of households to send a seasonal migrant their consumption at the origin increases significantly and treated households are 8 10 percentage points more likely to re migrate 1 and 3 years after the incentive is removed these facts can be explained qualitatively by a model in which migration is risky mitigating risk requires individual specific learning and some migrants are sufficiently close to subsistence that failed migration is very costly we document evidence consistent with this model using heterogeneity analysis and additional experimental variation but calibrations with forward looking households that can save up to migrate suggest that it is difficult for the model to quantitatively match the data we conclude with extensions to the model that could provide a better quantitative accounting of the behavior

migration human capital accumulation and economic development we study how the possibility of migration changes the composition of human capital in sending countries and how this affects development in our model growth is driven by productivity growth which occurs via imitation or innovation both activities use the same types of skilled labour as input albeit with different intensities heterogenous agents accumulate skills in response to economic incentives migration distorts these incentives and the accumulation of human capital this slows down or even hinders economic development the effect is stronger the farther away the country is from the technological frontier

avoiding uncertainty in hofstede and globe this paper compares the uncertainty avoidance ua dimension of national culture across the hofstede and globe models looking at relationships in both data and analysis rather than mutual support we detail major differences and anomalies across the studies we show how these anomalies are resulting in contradictory explanations in research on national differences across a range of individual firm and country level phenomena we clarify the ua measurement in both hofstede and globe and find that the two models are measuring different components of the ua construct we propose a two component model of ua namely ua stress and ua rule orientation and confirm its validity with national culture data from the hofstede and globe studies and economic data from the world bank we also explain the negative globe ua practices values relationship using motivational theories a way forward in future ua related research is suggested the hofstede ua index the globe ua practices scores and the globe ua values scores should be used within the specific domains that they represent that is stress rule orientation practices and rule orientation aspirations respectively resolving the contradictions in ua between and within hofstede and globe will help cross cultural researchers develop more robust theories and more practical recommendations for international business management

values and marginal preferences in international business in a recent paper in this journal maseland and van hoorn argued that values surveys tend to conflate values and marginal preferences this assertion has been challenged by brewer and venaik who claim that the wording of most survey items does not suggest that these elicit marginal preferences this commentary responds to their claim and restates our original argument we stress that the distinction between values and marginal preferences is a conceptual rather than a semantic issue conflation of the two is a problem of stated preferences methods in general regardless of question formats what is more we argue that support for the marginal preferences interpretation of values survey data does not come from the specific wording of questions used in surveys but from a growing number of paradoxical relations between values ratings and outcomes in values research implications are twofold first we argue that in order to measure values we need to look at alternatives to the stated preferences approach such as revealed preferences and experienced preferences of which the latter seems most promising second we find that values surveys eliciting marginal preferences are useful for understanding and predicting differences in behavior in a given context

determining the optimal installation timing of building integrated photovoltaic systems abstract photovoltaic systems offer clean energy production and have the potential to meet future energy demands as a decentralized power source photovoltaic systems enhance the security of electricity supplies one type of photovoltaic systems building integrated photovoltaic systems offer additional advantages beyond traditional photovoltaic systems as they do not require large swatches of land as they are integrated into existing buildings unfortunately despite these benefits uncertainty regarding future electricity prices make valuing photovoltaic systems difficult which reduces their attractiveness in scenarios with uncertainty in future electricity prices investors have managerial flexibility in the form of deferring investment and considering various system sizes which can affect and improve system valuations considering that variation in electricity prices can jeopardize the timely installation of an optimally sized photovoltaic system the objective of this paper is to propose a real option framework to model the price of electricity and account for the value of managerial flexibility when valuing building integrated photovoltaic systems a case study using the framework is conducted to calculate the net present value of a real life building integrated photovoltaic project in daejeon south korea it was found that the optimal decision for would be building integrated photovoltaic system owners is to wait to invest in building integrated photovoltaic systems when there are high levels of uncertainty in future electricity prices this holds true even if the net present values for systems without options are positive when applying this strategy to the apartment complex in the case study it generated an option value of approximately 87 000

testing the brain gain hypothesis micro evidence from cape verde abstract does emigration really drain human capital accumulation in origin countries this paper explores a unique household survey designed and conducted to answer this research question we analyze the case of cape verde a country with allegedly the highest brain drain in africa despite a marked record of income and human capital growth in recent decades we propose the first explicit test of brain drain arguments according to which the prospects of own future migration can positively impact educational attainment our most conservative estimates using individual specific variation in economic conditions at the destination indicate that a 10 pp increase in the probability of own future migration improves the probability of completing intermediate secondary schooling by nearly 4 pp for individuals who do not migrate before age 16 these findings are robust to the choice of instruments and econometric specification counterfactual simulations point to significant human capital gains from lowering migration barriers

cultural intelligence a theory based short form measure this article reports the development and validation of a theory based short form measure of cultural intelligence sfcq the sfcq captures the original theoretical intent of a multifaceted culture general form of intelligence that is related to effective intercultural interactions the validity of the scale is established with 3526 participants in five language groups from around the world results provide evidence for construct and criterion related validity of the measure and indicate that cultural intelligence is a single latent factor reflected in three intermediate facets in support of construct validity the measure is modestly related to but distinct from emotional intelligence and personality and correlates positively with several indicators of multicultural experience with regard to criterion related validity it relates as predicted to several dimensions of intercultural effectiveness implications for the measurement and understanding of culture and the influence of culture on management practice are discussed

can a brain drain be good for growth in the source economy this paper analyzes the interaction between income distribution human capital accumulation and migration it shows that when migration is not a certainty a brain drain may increase average productivity and equality in the source economy even though average productivity is a positive function of past average levels of human capital in an economy it is also shown how the temporary possibility of emigration may permanently increase the average level of productivity of an economy

national culture and expatriate deployment we hypothesize that expatriate deployment is a control function predicted by home country culture dimensions with transaction cost and agency repercussions rather than culture in the aggregate this departure from the traditional conceptualization and measurement of cultural impact also yields a hypothesized asymmetrical effect which is tested for a multi country sample of 236 multinational subsidiaries using multiple measures of national culture hypotheses are supported with assertiveness and power distance confirmed as prime predictors of expatriate deployment

accounting for selectivity and duration dependent heterogeneity when estimating the impact of emigration on incomes and poverty in sending areas the impacts of international emigration and remittances on incomes and poverty in sending areas are increasingly studied with household survey data but comparing households with and without emigrants is complicated by a triple selectivity problem first households self select into emigration second in some emigrant households everyone moves while others leave members behind and third some emigrants choose to return to the origin country allowing for duration dependent heterogeneity introduces a fourth form of selectivity one must now worry not just about whether households migrate but also when they do so this paper clearly sets out these selectivity issues and their implications for existing migration studies and then addresses them by using survey data designed specifically to take advantage of a randomized lottery that determines which applicants to the over subscribed samoan quota may immigrate to new zealand the analysis compares incomes and poverty rates among left behind members in households in samoa that sent samoan quota emigrants with those for members of similar households that were unsuccessful in the lottery policy rules control who can accompany the principal migrant providing an instrument to address the second selectivity problem while differences among migrants in which year their ballot was selected allow for estimation of duration effects the authors find that migration reduced poverty among former household members but they also find suggestive evidence that this effect may be short lived as both remittances and agricultural income are negatively related to the duration that the migrant has been abroad

the economic consequences of brain drain of the best and brightest microeconomic evidence from five countries this article presents results of innovative surveys that tracked academic high achievers from five countries to wherever they moved in the world to directly measure at the micro level the channels through which high skilled emigration affects sending countries there are high levels of emigration and of return and the income gains to the best and brightest from migrating are an order of magnitude greater than any other effect most high skilled migrants from poorer countries remit but involvement in trade and foreign direct investment is rare fiscal costs vary widely but are much less than the benefits to the migrants themselves two narratives drive discussions of the development impact of high skilled migration the first is the idea of a brain drain whereby the departure of doctors teachers engineers scientists and other highly skilled workers decimates the human capital and fiscal revenues of sending countries bhagwati and hamada 1974 such fears lead to calls for policies to restrict the flow of highly skilled workers such as demands that developed countries stop recruiting doctors from developing nations and efforts by developing nations to restrict the ease of their highly skilled individuals migrating 1 contrasting with this is the view of a highly educated diaspora as a potent force for developing the local economy through remittances trade foreign direct investment fdi and knowledge transfers with the experience of india and china in setting up technology firms as a result of diaspora working in silicon valley a prominent example saxenian 2002 economists have also emphasised that the possibility of migrating may spur human capital accumulation potentially leading to a net increase in the education levels of those in the home country 2

urban influences on rural schooling in india abstract many believe that low levels of schooling in rural areas of developing economies are a consequence of the low rate of return to schooling in agriculture this belies the possibility that rural schooling decisions are undertaken in response to the possibility of employment in urban areas this paper tests this hypothesis using three cross sections of household data for rural india it finds that urban rates of return do influence rural schooling particularly amongst households who are most likely to seek urban employment such as the landless the results suggest that low levels of rural schooling may reflect not just conditions in the local village economy but also the functioning and size of the relevant labor market

international migration remittances and household investment evidence from philippine migrants exchange rate shocks how do households respond to overseas members economic shocks overseas filipinos in dozens of countries experienced sudden heterogeneous changes in exchange rates during the 1997 asian financial crisis appreciation of a migrant s currency against the philippine peso leads to increases in household remittances from overseas the estimated elasticity of philippine peso remittances with respect to the exchange rate is 0 60 positive migrant shocks lead to enhanced human capital accumulation and entrepreneurship in origin households child schooling and educational expenditure rise while child labour falls households also work more hours in self employment and become more likely to start relatively capital intensive household enterprises

globalization brain drain and development this paper reviews four decades of economics research on the brain drain with a focus on recent contributions and on development issues we first assess the magnitude intensity and determinants of the brain drain showing that brain drain or high skill migration is becoming a dominant pattern of international migration and a major aspect of globalization we then use a stylized growth model to analyze the various channels through which a brain drain affects the sending countries and review the evidence on these channels the recent empirical literature shows that high skill emigration need not deplete a country s human capital stock and can generate positive network externalities three case studies are also considered the african medical brain drain the exodus of european scientists to the united states and the role of the indian diaspora in the development of india s information technology sector we conclude with a discussion of the implications of the analysis for education immigration and international taxation policies in a global context

economic creativity and innovation implementation the entrepreneurial drivers of growth evidence from 63 countries this paper examines the effect of culture on national innovation and prosperity because culture shapes the way people think about and behave in regard to risk opportunities and rewards it should influence the nature of entrepreneurial activity and by extension economic outcomes using structural equation modeling on a sample of 63 countries we propose and test a comprehensive explanation of how culture as an umbrella construct as opposed to an analysis of its constituent parts affects innovation and national prosperity we propose a two stage model of innovation and find support for our hypothesized relationship that economic creativity influences innovation implementation at the national level we find that culture does indeed influence economic creativity we also find that innovation implementation explained some of the variation in prosperity across countries by establishing that big picture culture matters to innovation the door has opened for researchers to evaluate this relationship using data from any one of a number of rival culture frameworks moreover these empirical finding buttress the theoretical arguments that culture powerfully shapes the character of national innovation

international migration and educated unemployment this paper provides a novel explanation of educated unemployment which is a salient feature of the labor markets in a number of developing countries in a simple job search framework we show that educated unemployment is caused by the prospect of international migration that is by the possibility of a brain drain in addition the analysis shows that a developing country may end up with more educated workers despite the brain drain and educated unemployment

what did globe really measure researchers minds versus respondents minds the globe research program expanded the hofstede model of five dimensions of national cultures to 18 a re analysis based on globe s 2004 summary book produced five meta factors one was significantly correlated with gnp capita and from the hofstede dimensions primarily with power distance three more correlated significantly with hofstede s individualism uncertainty avoidance and long term orientation the fifth included the few globe questions that related to hofstede s dimension of masculinity versus femininity globe s respondents minds classified the questions in a way that the researchers minds did not account for and which closely resembles the original hofstede model

eight questions about brain drain high skilled emigration is an emotive issue that in popular discourse is often referred to as brain drain conjuring images of extremely negative impacts on developing countries recent discussions of brain gain diaspora effects and other advantages of migration have been used to argue against this but much of the discussion has been absent of evidence this paper builds upon a new wave of empirical research to answer eight key questions underlying much of the brain drain debate 1 what is brain drain 2 why should economists care about it 3 is brain drain increasing 4 is there a positive relationship between skilled and unskilled migration 5 what makes brain drain more likely 6 does brain gain exist 7 do high skilled workers remit invest and share knowledge back home and 8 what do we know about the fiscal and production externalities of brain drain

explaining the negative correlation between values and practices a note on the hofstede globe debate this note provides an explanation for the presumably counterintuitive negative correlations between values and practices reported by the global leadership and organizational behavior effectiveness project we argue that such results are compatible with basic microeconomic insights concerning diminishing marginal utility this explanation implies that values surveys as they are generally elicit marginal preferences rather than underlying values therefore they are a problematic instrument for the measurement of cultures and need to be improved so as to discriminate between the importance attached to an objective in general and that attached to it given current levels of satiation

leading cultural research in the future a matter of paradigms and taste the styles and approaches used in cross cultural organizational research are nearly as varied as the cultures under study we see two variations of one dominant style in the work of hofstede and the globe research consortium in this commentary i shall place these approaches in context and discuss alternatives that seem to be highly promising but largely overlooked based on this analysis i conclude that it may well be time that this form of large scale multi country survey be set aside for the development of alternative mid range theories having a more direct application and explanation for organizational phenomena in a cultural and national context

schooling and labor market consequences of school construction in indonesia evidence from an unusual policy experiment between 1973 and 1978 the indonesian government engaged in one of the largest school construction programs on record combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the program suggests that each primary school constructed per 1 000 children led to an average increase of 0 12 to 0 19 years of education as well as a 1 5 to 2 7 percent increase in wages this implies estimates of economic returns to education ranging from 6 8 to 10 6 percent

is migration a good substitute for education subsidies assuming a given educational policy the recent brain drain literature reveals that skilled migration can boost the average level of schooling in developing countries this paper introduces educational subsidies determined by governments concerned by the number of skilled workers remaining in the country the theoretical analysis shows that developing countries can benefit from skilled emigration when educational subsidies entail high fiscal distortions however when taxes are not too distortionary it is desirable to impede emigration and subsidize education the authors investigate the empirical relationship between educational subsidies and migration prospects obtaining a negative relationship for 105 countries based on this result the analysis revisits the country specific effects of skilled migration upon human capital the findings show that the endogeneity of public subsidies reduces the number of winners and increases the magnitude of the losses

conceptualizing and measuring culture in international business and management from challenges to potential solutions understanding the influence of culture on business operations has been one of the most enduring components of international business ib and international management im theorizing and empirical investigation while several critiques and debates questioned the significant progress made in this domain the special issue we introduce here is meant to demonstrate that further advancement on how we conceptualize and measure culture is not only needed but also possible we provide an overview of past and current approaches in the measurement of culture in ib im and the challenges associated with these approaches and emphasize the important yet insufficiently acknowledged link between the theoretical conceptualization of culture and its measurement we then introduce the four articles included in the special issue and highlight how they break away from the addiction to approaches that have been very useful in getting where we are today but that might not always be useful in advancing knowledge beyond what we already know last but not the least we offer our own perspective on promising directions in conceptually and methodologically rethinking the study of culture in ib and im

manila to malaysia quezon to qatar international migration and its effects on origin country human capital i estimate the effect of international migration on the human capital of children in the migrants origin country using administrative data containing all migrant departures from the philippines i exploit variation across provinces in destination country demand for migrants my estimates are at the local labor market level allowing for spillovers to nonmigrant households an average year to year percent increase in migration causes a 3 5 percent increase in secondary school enrollment the effects are likely driven by increased income rather than an increased expected wage premium for education abstract from author

long run effects and intergenerational transmission of natural disasters a case study on the 1970 ancash earthquake abstract this study estimates the effects of the 1970 ancash earthquake on human capital accumulation on the affected and subsequent generation 37 years after the shock using peruvian census of 1993 and 2007 the main finding is that males affected by the earthquake in utero completed on average 0 5 years less schooling while females affected by the earthquake completed 0 8 years less schooling moreover those affected by the earthquake also fare far worse in the marriage market and become parents at a much younger age in addition children of mothers affected at birth by the earthquake have 0 4 less years of education while those whose fathers were affected at birth show no effects other outcomes also suggest that welfare of the affected individuals has been negatively impacted in the long run this research supports previous literature on shocks in early childhood providing evidence of the existence of intergenerational transmission of shocks

the development impact of a best practice seasonal worker policy seasonal migration programs are widely used around the world yet there is little evidence as to their development impacts a multiyear prospective evaluation of new zealand s recognised seasonal employer rse seasonal worker program allows us to measure the impact of participating in this program on households in tonga and vanuatu using a propensity score prescreened difference in differences analysis based on surveys fielded before during and after participation we find that the rse has indeed had positive development impacts that dwarf those of other popular development interventions it has increased income consumption and savings of households durable goods ownership and subjective standard of living the results also suggest that child schooling improved in tonga

a culture theory commentary on meyer and peng s theoretical probe into central and eastern europe meyer and peng s decade award article and retrospective integrate economic and sociological theories of transaction costs firm resources and institutions and apply them to firms in central and eastern europe in ways that can inform and be informed by culture theory culture theorizing in ib typically uses dimensions of values and norms to analyze the ib implications of the underlying logics that characterize patterns of thought action and interaction of countries and other large societies transaction cost theorizing helps explain the social forces that link cultural group boundaries with country boundaries firm resource theory can be informed by the toolbox metaphor to understand cultural patterns in the resources that firms in a particular locale have most readily available neo institutional theory particularly its political science thread cautions ib scholars to represent governmental arrangements and policies as arising from cultural norms and values rather than as independent variables that spring de nova from government leaders integrative analyses like the decade award article and retrospective point out links and complementarities among diverse theories but need to take care lest superficial similarities in how terms like institution and culture are used in different theories mask fundamental conceptual differences