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A Panel Data Analysis of the Brain Gain

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  • Beine, Michel
  • Docquier, Frédéric
  • Oden-Defoort, Cecily

Abstract

Summary In this paper, we revisit the impact of skilled emigration on human capital accumulation using new panel data covering 147 countries during the period 1975-2000. We derive testable predictions from a stylized theoretical model and test them in dynamic regression models. Our empirical analysis predicts conditional convergence of human capital indicators. Our findings also reveal that skilled migration prospects foster human capital accumulation in low-income countries. In these countries, a net brain gain can be obtained if the skilled emigration rate is not too large (i.e., it does not exceed 20-30% depending on other country characteristics). In contrast, we find no evidence of a significant incentive mechanism in middle-income, and not surprisingly, high-income countries.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 4 (April)
Pages: 523-532

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:4:p:523-532

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: human capital convergence brain drain;

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Citations

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Cited by:
  1. Claire Naiditch & Radu Vranceanu, 2013. "A two-country model of high skill migration with public education," Post-Print hal-00779716, HAL.
  2. Catia Batista, Aitor Lacuesta and Pedro C. Vicente, 2009. "Testing the 'Brain Gain' Hypothesis: MIcro Evidence from Cape Verde," The Institute for International Integration Studies Discussion Paper Series iiisdp282, IIIS.
  3. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," CReAM Discussion Paper Series 1105, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Di Maria, Corrado & Lazarova, Emiliya A., 2012. "Migration, Human Capital Formation, and Growth: An Empirical Investigation," World Development, Elsevier, vol. 40(5), pages 938-955.
  5. Berlinschi, Ruxanda & Schokkaert, Jeroen & Swinnen, Johan, 2013. "When drains and gains coincide: Migration and international football performance," Labour Economics, Elsevier, vol. 21(C), pages 1-14.
  6. Driouchi, Ahmed & Zouag, Nada, 2010. "Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies," MPRA Paper 21799, University Library of Munich, Germany, revised 01 Apr 2010.
  7. Mitra, Aniruddha & Bang, James T. & Wunnava, Phanindra V., 2011. "Financial Liberalization and the Brain Drain: A Panel Data Analysis," IZA Discussion Papers 5953, Institute for the Study of Labor (IZA).
  8. Catia Batista & Aitor Lacuesta & Pedro Vicente, 2009. "Micro evidence of the brain gain hypothesis: The case of Cape Verde," Banco de Espa�a Working Papers 0902, Banco de Espa�a.
  9. Driouchi, Ahmed & Kadiri, Molk, 2010. "Emigration of Skilled Labor under Risk Aversion: The Case of Medical Doctors from Middle Eastern and North African Economies," MPRA Paper 22810, University Library of Munich, Germany, revised 20 May 2010.

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