rafmacalaba/datause-encoder-data huggingface dataset:
Brain gain : claims about its size
            and impact on welfare and growth are greatly exaggerated
WPS3708

# **Brain Gain: Claims about its Size and Impact on Welfare and Growth Are Greatly Exaggerated***

# **Maurice Schiff World Bank and IZA**

## **ABSTRACT**

Based on static partial equilibrium analysis, the “new brain drain” literature argues that, by raising the return to education, a brain drain generates a brain gain that is, under certain conditions, larger than the brain drain itself, and that such a _net_ brain gain results in an increase in welfare and growth due to education’s positive externalities. This paper argues that these claims are exaggerated. In the static case, and based on both partial and general equilibrium considerations, the paper shows that i) the size of the brain gain is smaller than suggested in that literature; ii) the impact on welfare and growth is smaller as well (for any brain gain size); iii) a positive brain gain is likely to result in a smaller, possibly negative, human capital gain; iv) an increase in the stock of human capital may have a negative impact on welfare and growth; and v) in a dynamic framework, the paper shows that the steady-state brain gain is equal to the brain drain so that a ‘beneficial brain drain’ cannot take place, and a net brain loss is likely during the transition.

Keywords: Brain Gain Size, Welfare, Growth, Exaggerated Claims JEL Codes: D61, D62, F22, H20, H41, I12, J61

## World Bank Policy Research Working Paper 3708, September 2005

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at_ _<u>http://econ.worldbank.org.</u>_

*An early version of the paper was presented at the Royal Economic Society (RES) Meetings, March 21 - 23, 2005. A second version was prepared during my stay at ECLAC (CEPAL) as Visiting Scholar in April 2005, and I’d like to thank José Luis Machinea and Andrés Solimano for their kind invitation. Thanks are also due to| Mohammad Amin, Frédéric Docquier, Maurice Kugler, Caglar Ozden, Pierre Pestieau, Hillel Rapoport, Alan Winters and participants at the RES session on “The New Economics of the Brain Drain: View and Counterview” for useful comments, to Vlad Manole for research assistance and to Maria Kasilag for logistical support.
What determines the extent of fiscal
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The paper provides an empirical analysis
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Trade credit and bank credit :
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Determinants of city growth in Brazil
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Small-scale private service
            providers of water supply and electricity : a review of
            incidence, structure, pricing, and operating characteristics
WPS3727 Small-Scale Private Service Providers of Water Supply and Electricity

# _A Review of Incidence, Structure, Pricing and Operating Characteristics_

Mukami Kariuki Jordan Schwartz World Bank - Energy and Water Department Bank Netherlands Water Partnership Public-Private Infrastructure Advisory Facility

## World Bank Policy Research Working Paper 3727, October 2005

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._ 1
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