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Rent-seeking activities and the `brain gain' effects of migration

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  • Baochun Peng

Abstract

This paper studies migration and rent-seeking activities in a framework of heterogeneous ability. It is shown that, despite the depletion of productive resources known as the `brain drain,' the possibility of migration could sufficiently reduce participation in rent-seeking activities and increase participation in productive activities such that the net effect of migration is a `brain gain.' Moreover, the possibility of migration that sufficiently enlarges the relative reward to ability in the productive sector could result in qualitative improvements in the allocation of talent.

Suggested Citation

  • Baochun Peng, 2009. "Rent-seeking activities and the `brain gain' effects of migration," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1561-1577, November.
    • Handle: RePEc:cje:issued:v:42:y:2009:i:4:p:1561-1577
    DOI: 10.1111/j.1540-5982.2009.01558.x
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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

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