Advanced Search
MyIDEAS: Login to save this article or follow this journal

Brain Drain, Fiscal Competition, and Public Education Expenditure

Contents:

Author Info

  • Hartmut Egger
  • Josef Falkinger
  • Volker Grossmann

Abstract

This paper uses a two-country model with integrated markets for high-skilled labor to analyze the opportunities and incentives for national governments to provide higher education. Countries can differ in productivity, and education is financed through a wage tax, so that brain drain affects the tax base and has agglomeration effects. We study unilateral possibilities for triggering or avoiding brain drain and compare education policies and migration patterns in non-cooperative political equilibria with the consequences of bilateral cooperation between countries. We thereby demonstrate that bilateral coordination tends to increase public education expenditure compared to non-cooperation. At the same time, it aims at preventing migration. This is not necessarily desirable from the point of view of a social planner who takes account of the interests of migrants.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1111/j.1467-9396.2011.01009.x
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 20 (2012)
Issue (Month): 1 (02)
Pages: 81-94

as in new window
Handle: RePEc:bla:reviec:v:20:y:2012:i:1:p:81-94

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0965-7576

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Poutvaara, Panu, 2006. "Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," IZA Discussion Papers 2478, Institute for the Study of Labor (IZA).
  2. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 275-289, February.
  3. Panu Poutvaara, 2004. "Educating Europe," CESifo Working Paper Series 1114, CESifo Group Munich.
  4. Sascha O. Becker & Andrea Ichino & Giovanni Peri, 2003. "How Large is the "Brain Drain" from Italy?," CESifo Working Paper Series 839, CESifo Group Munich.
  5. Poutvaara, Panu, 2004. "Educating Europe: Should Public Education be Financed with Graduate Taxes or Income-contingent Loans?," Munich Reprints in Economics, University of Munich, Department of Economics 19296, University of Munich, Department of Economics.
  6. Andersson, Fredrik & Konrad, Kai A., 2002. "Human capital investment and globalization in extortionary states," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-01, Social Science Research Center Berlin (WZB).
  7. Silke Uebelmesser, 2005. "To go or not to go: Emigration from Germany," CESifo Working Paper Series 1626, CESifo Group Munich.
  8. Bucovetsky, S., 2003. "Efficient migration and redistribution," Journal of Public Economics, Elsevier, Elsevier, vol. 87(11), pages 2459-2474, October.
  9. Justman, Moshe & Thisse, Jacques-Francois, 1997. "Implications of the mobility of skilled labor for local public funding of higher education," Economics Letters, Elsevier, Elsevier, vol. 55(3), pages 409-412, September.
  10. Poutvaara, Panu & Kanniainen, Vesa, 2000. "Why invest in your neighbor? Social contract on educational investment," Munich Reprints in Economics, University of Munich, Department of Economics 19797, University of Munich, Department of Economics.
  11. Alexander Haupt & Eckhard Janeba, 2004. "Education, Redistribution, and the Threat of Brain Drain," NBER Working Papers 10618, National Bureau of Economic Research, Inc.
  12. JUSTMAN, Moshe & THISSE, Jacques-Francois, 1997. "Local public funding of higher education when skilled labor is mobile," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1997024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  13. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, Elsevier, vol. 1(1), pages 19-42, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hartmut Egger & Gabriel J Felbermayr, 2009. "Endogenous Skill Formation and the Source Country Effects of Emigration," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim, Department of Economics, University of Hohenheim, Germany 308/2009, Department of Economics, University of Hohenheim, Germany.
  2. RosalindS. Hunter & Andrew J. Oswald & Bruce G. Charlton, 2009. "The Elite Brain Drain," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 119(538), pages F231-F251, 06.
  3. Grossmann, Volker & Stadelmann, David, 2012. "Does High-Skilled Migration Affect Publicly Financed Investments?," IZA Discussion Papers 6610, Institute for the Study of Labor (IZA).
  4. Scalera, Domenico, 2009. "Skilled migration and education policies: Is there still scope for a Bhagwati tax?," MPRA Paper 19643, University Library of Munich, Germany.
  5. Grossmann, Volker & Stadelmann, David, 2008. "International Mobility of the Highly Skilled, Endogenous R&D, and Public Infrastructure Investment," IZA Discussion Papers 3366, Institute for the Study of Labor (IZA).
  6. Hartmut Egger & Gabriel J. Felbermayr, 2007. "Endogenous Skill Formation and the Source Country Effects of International Labor Market Integration," CESifo Working Paper Series 2018, CESifo Group Munich.
  7. Hartmut Egger & Gabriel Felbermayr, 2009. "Endogenous Skill Formation and the Source Country Effects of Skilled Labor Emigration from Developing Countries," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(6), pages 706-729, December.
  8. Schwager, Robert, 2012. "Student loans in a tiebout model of higher education," Center for European, Governance and Economic Development Research Discussion Papers 137, University of Goettingen, Department of Economics.
  9. Rosalind S Hunter, 2009. "The Elite Brain Drain," Working Papers id:2048, eSocialSciences.
  10. Schwager, Robert, 2012. "Student loans in a tiebout model of higher education," Center for European, Governance and Economic Development Research Discussion Papers 137, University of Goettingen, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:20:y:2012:i:1:p:81-94. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.