Rethinking the brain drain: Dynamics and transition
AbstractThis paper injects a time dimension into the static, instantaneous adjustment model of Stark (2004). The paper assumes that in response to the incentive conferred by the prospect of migration, the average level of human capital – the source of a productivity-enhancing externality – changes gradually rather than immediately. This might seem to imply that, contrary to what is claimed in Stark (2004), the welfare of the workers who do not migrate, and who early on in the transition period adjust their level of human capital in response to the prospect of migration, declines because these workers do not face a higher average level of human capital. Rather surprisingly, however, the paper finds that the welfare result of Stark (2004) is robust to the relaxation of his assumption of instantaneous adjustment: even “pioneer” workers, who form more human capital in an environment in which the prevailing average level of human capital is approximately at the pre-migration level, are strictly better off when there is a prospect of migration than when there is not.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Economics & Finance.
Volume (Year): 28 (2013)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620165
Human capital formation; Migration; Brain drain; Externalities; Dynamics; Social welfare;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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.:
- Fan, C. Simon & Stark, Oded, 2007.
"International migration and "educated unemployment","
Journal of Development Economics,
Elsevier, vol. 83(1), pages 76-87, May.
- Stark, Oded & Fan, C. Simon, 2006. "International Migration and "Educated Unemployment"," Discussion Papers 7126, University of Bonn, Center for Development Research (ZEF).
- Oded Stark & C. Simon Fan, 2007.
"The Brain Drain, “Educated Unemployment,” Human Capital Formation, and Economic Betterment,"
CEDI Discussion Paper Series
07-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
- C. Simon Fan & Oded Stark, 2007. "The brain drain, 'educated unemployment', human capital formation, and economic betterment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15, pages 629-660, October.
- Stark, Oded & Fan, C. Simon, 2007. "The Brain Drain, "Educated Unemployment," Human Capital Formation, and Economic Betterment," Discussion Papers 7122, University of Bonn, Center for Development Research (ZEF).
- Stark, Oded, 2003.
"Rethinking The Brain Drain,"
18770, University of Bonn, Center for Development Research (ZEF).
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