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

ethnic discrimination and the migration of skilled labor we develop a model of interdependency between emigration education investment and discrimination in the context of an ethnically divided developing economy assuming a rent extraction basis for discrimination we first endogenize ethnic discrimination in the benchmark case of an economy closed to migration and then explore how migration prospects affect ethnic inequality under the free migration assumption we find the intuitive result that migration prospects have a protective effect on the minority immigration restrictions set by receiving countries on the other hand have the paradoxical effect of creating migration flows that would otherwise have remained latent

research upon return the effect of international mobility on scientific ties production and impact abstract highly skilled return migrants contribute to the establishment of ties between the home and host systems this paper studies how the professional ties which argentinean researchers built up during the time spent in foreign research systems influence their collaboration patterns and their research outputs upon return it confirms the expectation that having foreign work experience helps to explain the propensity to co publish internationally and it also shows that researchers collaborate to a higher degree with their former host system another central finding is that foreign work experience has a positive effect on the propensity to publish in journals with a high impact factor additionally a large share of this type of research is published without international co authorship we therefore do no not find evidence of a lack of publication autonomy in the case of argentinean returnees

the pro trade effect of the brain drain sorting out confounding factors we sort out confounding factors in the empirical link between bilateral migration and trade using newly available panel data on developing countries diaspora to rich oecd nations in a theory grounded gravity model we uncover a robust causal pro trade effect moreover we do not find evidence in favor of strong differences across education groups

do migrants improve governance at home evidence from a voting experiment can international migration promote better institutions at home by raising the demand for political accountability a behavioral measure of the population s desire for better governance was designed to examine this question a postcard was distributed to households promising that if enough postcards were mailed back results from a survey module on perceived corruption would be published in the national media data from a tailored household survey were used to examine the determinants of this behavioral measure of demand for political accountability undertaking the costly action of mailing the postcard and to isolate the positive effect of international emigration using locality level variation the estimated effects are robust to the use of instrumental variables including past migration and macro shocks in the destination countries the estimated effects can be attributed mainly to migrants who immigrated to countries with better governance especially migrants who return home

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

wage effects of high skilled migration international evidence the international migration of high skilled workers may trigger productivity effects at the macro level such that the wage rate of skilled workers increases in host countries and decrease in source countries the authors exploit data on international bilateral migration flows and provide evidence consistent with this theoretical hypothesis they propose various instrumentation strategies to identify the causal effect of skilled migration on log differences of gdp per capita total factor productivity and the wages of skilled workers between pairs of source and destination countries these strategies aim to address the endogeneity problem that arises when international wage differences affect migration decisions

education economic growth and brain drain abstract this paper constructs a two sector overlapping generations model of endogenous growth to study the effects of brain drain on growth education and income distribution it is shown that brain drain reduces the economic growth rate and generally hurts the non emigrants through the static income distributional effects and the dynamic damage on economic growth and human capital accumulation if the initial rate of human capital accumulation is relatively low brain drain could deteriorate both the sum of discounted income and lifetime discounted utility of a representative non emigrant the government can choose to spend more on education to lessen the detrimental growth effects of brain drain

migration with endogenous moving costs we study a dynamic model of labor migration in which moving costs decrease with the number of migrants already settled in the destination this assumption is supported by sociological studies of migrant networks with endogenous moving costs migration occurs gradually over time once it starts it develops momentum and migratory flows may increase even as wage differentials narrow in addition migration tends to follow geographical channels and low moving cost individuals migrate first these patterns are consistent with historical evidence from the great black migration of 1915 1960 in the united states much of which cannot be reconciled with existing migration models excerpt

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

bidding for brains intellectual property rights and the international migration of knowledge workers we introduce international mobility of knowledge workers into a model of nash equilibrium ipr policy choice among countries we show that governments have incentives to use iprs in a bidding war for global talent resulting in nash equilibrium iprs that can be too high rather than too low from a global welfare perspective these incentives become stronger as developing countries grow in size and wealth thus allowing them to prevent the poaching of their brains by larger wealthier markets

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

determinants of workers remittances an empirical investigation for a panel of eleven developing asian economies we explore the key motives of migrant workers remittances from abroad for 11 major asian migrant sending countries using panel regressions we find that relative higher growth rate interest rate and capital market returns of home over the host investment financial deepening at home have significant impact on remittance inflows into asia along with higher per capita incomes and international crude oil prices with incorporation of per capita incomes and lagged impact of remittances we observe an emergence of consumption motives to remit therefore we conclude that both investment and altruistic motives are the driving forces for remittances inflows into the asian economies

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

is skilled immigration always good for growth in the receiving economy abstract a highly skilled immigration can be growth enhancing if the positive contribution of the imported brains to the host economy s human capital stock outweighs the immigration induced adverse effect on educational incentives for natives or growth depleting if the latter effect dominates

keynes and coase abstractronald coase has written provocatively on the methodology of positive economics but this aspect of his work is not well known or much attended to and to the extent it is noticed it is regarded by most modern economists as eccentric as it involves a rejection of rational choice theory the effort in this paper is to rescue his methodological writings from obscurity and note the hitherto unremarked and paradoxical methodological affinity between him and john maynard keynes whose unmodern approach to economics is enjoying renewed respect in the wake of the global economic crisis that began in 2008

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

brain drain in globalization a general equilibrium analysis from the sending countries perspective according to the economic literature high skilled emigration may either harm or bene t developing economies recent research highlighted several positive and negative channels through which the brain drain operates this paper aims at evaluating the relative magnitudes of various brain drain channels and quantifying their global impact on migrants sending countries for this purpose we develop a 10 region general equilibrium model of the world economy characterized by overlapping generations dynamics our ndings suggest that the short run impact of brain drain on resident human capital is extremely crucial as it affects not only the number of high skilled workers available to domestic production but also the sending economy s capacity to innovate adopt modern technologies this latter effect is particularly important in globalization where capital investments are made in places with high production ef ciencies hence despite positive feedback effects those countries facing prevalent high skilled emigration are the most candid victims to brain drain

overseas employment and remittances to a dual economy overseas employment has become more commonplace and remittances have increased in similar proportions for poor countries remittances often substantially influence domestic expenditures and real exchange rates we study overseas employment remittances and domestic underemployment in a simple general equilibrium model with a non traded good and minimum wage the influence of population growth rural productivity and family altruism are examined if remittances per migrant exceed domestic productivity then multiple equilibria may occur exhibiting high or low overseas employment we discuss how the equilibrium with highest overseas employment conditionally pareto dominates the other equilibria and analyse policy co ordination

global competition for attracting talents and the world economy this paper studies the effect of liberalizing the international mobility of college educated workers on the world economy first we combine data on effective and desired migration to identify the net pool of foreign talents npft of selected high income countries so far the eu15 has poorly benefited from its npft while the us has mobilized a large portion of it second we use a micro founded model to simulate the effects of skill selective liberalization shocks in our benchmark model a worldwide liberalization induces larger long run income gains for the eu15 8 8 percent than for the us 5 9 percent however less attractive eu countries such as austria belgium germany greece luxembourg and the netherlands benefit less than the us in addition liberalizing high skilled migration decreases income per worker by 2 5 percent in developing countries overall it increases efficiency 6 2 percent in the worldwide average level of income per capita and inequality 1 2 percentage points in the theil inequality index much greater effects can be obtained if total factor productivity varies with human capital

composition and determinants of the skilled out migration in the brazilian formal labor market a panel data analysis from 1995 to 2006 this paper aims to examine the composition and identify determinant factors of interstate the skilled labor loss in the brazilian formal labor market between 1995 and 2006 with emphasis on the role of individual motivations and regional factors in order to estimate such determinants we use a fixed effect logit in a wide panel with data from ministry of labor and employment rais migra annual report on social information and ibge the brazilian statistics bureau the estimated results confirm the importance of wage differentials in determining such mobility furthermore an increased skilled out migration probability is explained by skilled workers heading to states showing economic prosperity higher dynamism in the labor market as well as higher population density 2014 national association of postgraduate centers in economics anpec production and hosting by elsevier b v all rights reserved

openness and income the roles of trade and migration abstract this paper explores the relationship between openness to trade immigration and income per person across countries to address endogeneity concerns we extend the instrumental variables strategy introduced by frankel and romer 1999 we build predictors of openness to immigration and to trade for each country by using information on bilateral geographical and cultural distance while controlling for country size since geography may affect income through other channels we also control for climate disease environment natural resources and colonial origins most importantly we also account for the roles of institutions and early development our instrumental variables estimates provide evidence of a robust positive effect of openness to immigration on long run income per capita in contrast we are unable to establish an effect of trade openness on income we also show that the effect of migration operates through an increase in total factor productivity which appears to reflect increased diversity in productive skills and to some extent a higher rate of innovation

efficiency gains from liberalizing labor mobility in this paper we quantify the effect of a complete liberalization of cross border migration on the world gdp and its distribution across regions we build a general equilibrium model endogenizing bilateral migration and income disparities between and within countries our calibration strategy uses data on effective and potential migration to identify total migration costs and visa costs by education level data on potential migration reveal that the number of people in the world who have a desire to migrate is around 400 million this number is much smaller than that predicted in previous studies and reflects the existence of high incompressible migration costs in our benchmark framework liberalizing migration increases the world gdp by 11 5 12 5 percent in the medium term our robustness analysis reveals that the gains are always limited in the range of 7 0 percent with schooling externalities to 17 9 percent if network effects are accounted for

hybrid entrepreneurship and public policy the case of firm entry deregulation hybrid entrepreneurs are entrepreneurs who are simultaneously working as paid employees although they constitute a systematic and large part of new firm creation their possibly distinct responsiveness to public policy is not yet studied arguing for the need to consider hybrid entrepreneurs in public policy we analyze the introduction of one stop shops for faster and simplified firm registration in mexico we find that hybrid entrepreneurs are more responsive to changes in entry regulation than full time entrepreneurs while both the best and least educated people respond to the reform the effect is most pronounced for highly educated hybrid entrepreneurs

the brain drain and the world distribution of income abstract skilled emigration or brain drain from developing to developed countries is becoming the dominant pattern of international migration today such migration is likely to affect the world distribution of income both directly through the mobility of people and indirectly as the prospect of migration affects the rate of return to education in both the sending and receiving economies this migration pattern will therefore affect human capital accumulation and fertility decisions in both the sending and receiving economies this paper analyzes these effects in a dynamic two country model of the world economy where agents in both countries make optimal fertility and human capital decisions the implications of the analysis for the world distribution of income are derived in the light of recent empirical findings of the brain drain literature the analysis shows that the current trend towards predominantly skilled emigration from poor to rich countries may in the long run increase inequality in the world distribution of income as relatively poor countries grow large in terms of population in the short run however it is possible for world inequality to fall due to rises in gdp per capita in large developing economies with sufficiently low skilled emigration rates

heaven s swing door endogenous skills migration networks and the effectiveness of quality selective immigration policies a growing number of oecd countries are leaning toward the adoption of selective immigration policies which are expected to raise the quality or education level of migrants this view neglects two important dynamic effects the role of migration networks which could reduce the quality of migrants and the responsiveness of education decisions to the prospect of migration we propose a model of self selection into migration with endogenous education choices which predicts that migration networks and the quality of migrants can be positively associated when destination countries adopt sufficiently selective immigration policies empirical evidence presented as background motivation suggests that this is indeed the case

networks in the modern economy mexican migrants in the u s labor market this paper attempts to identify job networks among mexican migrants in the u s labor market the empirical analysis uses data on migration patterns and labor market outcomes based on a sample of individuals belonging to multiple origin communities in mexico over a long period of time each community s network is measured by the proportion of the sampled individuals who are located at the destination the united states in any year we verify that the same individual is more likely to be employed and to hold a higher paying nonagricultural job when his network is exogenously larger by including individual fixed effects in the employment and occupation regressions and by using rainfall in the origin community as an instrument for the size of the network at the destination

revisiting the brain drain literature with insights from a dynamic general equilibrium world model the existing brain drain literature has found various mechanisms through which the high skilled south to north migration affects developing economies however some of the new found effects remain disputable due to limited evidence this study aimed to provide suggestive guidelines for future research by identifying the mechanisms that can generate larger economic impacts at the aggregate the analysis is based on a dynamic general equilibrium world model that is calibrated to published statistics and incorporates empirical estimates on the effects of brain drain it simulates short and long run impacts of increased brain drain on gdp per capita gni per capita and income inequality the results suggest that more studies should be conducted to further examine how the brain drain influences human capital formation and technology spillovers both have significant impacts on domestic production and national income a better understanding of different remitting patterns is also desirable to understand how to reduce inequality and promote recipients investment in productive assets