Brain Drain and Brain Gain in Europe: An Evaluation of the East-European Migration to Germany
AbstractThis article seeks empirically for some effects in the migration flows from East European countries to Germany. Using previously unpublished Eurostat data we find that highly qualified persons tend to immigrate overproportionally into Germany so that the stock of human capital within the sending countries is reduced. With the help of a panel data analysis we then estimate a European production function and find that the share of highly qualified persons in the population has a significant and positive effect on the explanation of income differentials across the EU(12) countries. Using the obtained parameters of the production function for the East European countries we calibrate the welfare effects of the brain drain. Our major findings are: First, Germany gains from migration from Eastern Europe whereas Eastern European countries lose from free migration because the average stock of human capital is lowered. Second, the overall increase in income is positive, thus international welfare increases. Third, taking remittances into account does not alter the qualitative findings.
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Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 218 (1999)
Issue (Month): 5+6 (May)
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international migration; east enlargement of the European Union; externalities of human capital; (new) growth theory; macroeconomic simulation models;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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- Matloob Piracha & Roger Vickerman, 2002. "Immigration, Labour Mobility and EU Enlargement," Studies in Economics 0209, Department of Economics, University of Kent.
- Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920, October.
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