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A Brain Gain Or A Brain Drain? Migration, Endogenous Fertility, And Human Capital Formation

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  • HUNG‐JU CHEN

Abstract

This study develops an endogenous growth model of migration to analyze the impact of international migration on the economic growth of a source country. When making their fertility and education decisions, adults may have the option of migrating to a foreign country. We find that changes in the migration probability or the extent of migration costs will lead to a trade‐off between the quality and the quantity of children. When a host country cannot differentiate between the abilities of migrants, an increase in migration probability will raise a source country’s economic growth. When low‐ and high‐skilled workers are faced with different migration probabilities, allowing more low‐skilled workers to emigrate will cause a “brain gain” in both the short run and the long run. However, relaxation of restrictions on the emigration of high‐skilled workers will damage economic growth in the long run, although a brain gain may occur in the short run.(JEL F22, J24, O15)

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  • Hung‐Ju Chen, 2009. "A Brain Gain Or A Brain Drain? Migration, Endogenous Fertility, And Human Capital Formation," Economic Inquiry, Western Economic Association International, vol. 47(4), pages 766-782, October.
    • Handle: RePEc:bla:ecinqu:v:47:y:2009:i:4:p:766-782
    DOI: 10.1111/j.1465-7295.2008.00185.x
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    1. Mountford, Andrew & Rapoport, Hillel, 2011. "The brain drain and the world distribution of income," Journal of Development Economics, Elsevier, vol. 95(1), pages 4-17, May.
    2. Frédéric Docquier & Hillel Rapoport, 2012. "Globalization, Brain Drain, and Development," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 681-730, September.
    3. Leonid V. Azarnert, 2012. "Guest‐worker Migration, Human Capital and Fertility," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 318-330, May.
    4. Chen, Hung-Ju & Sultana, Rezina, 2013. "Job Reservation and Intergenerational Transmission of Preferences," MPRA Paper 45036, University Library of Munich, Germany.
    5. Mohammad Salahuddin & Jeff Gow, 2015. "The relationship between economic growth and remittances in the presence of cross-sectional dependence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 207-221, January-M.
    6. Roxana Idu, 2019. "Source Country Economic Development and Dynamics of the Skill Composition of Emigration," Economies, MDPI, vol. 7(1), pages 1-18, March.
    7. Abubakar Lawan Ngoma & Normaz Wana Ismail, 2013. "The Impact of Brain Drain on Human Capital in Developing Countries," South African Journal of Economics, Economic Society of South Africa, vol. 81(2), pages 211-224, June.
    8. Michael Landesmann & Isilda Mara, 2016. "Massive Migration and its Effect on Human Capital and Growth: The Case of Western Balkan and Central and Eastern European Countries," wiiw Balkan Observatory Working Papers 124, The Vienna Institute for International Economic Studies, wiiw.
    9. Khraiche, Maroula & Boudreau, James, 2020. "Can lower remittance costs improve human capital accumulation in Africa?," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1000-1021.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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