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Policy Repercussions of "The New Economics of the Brain Drain"

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  • Stark, Oded

Abstract

In this paper I delineate novel policy repercussions suggested by my research on “The New Economics of the Brain Drain.” In section 1, I provide a succinct account of the model that inspires the derivation of several new policy implications. In sections 2 through 5, I present the policy implications. I address the following questions: When and how can migration to a country substitute for educational subsidies in that country? Who should be admitted when the receiving country cares about the wellbeing of the unskilled workers who stay behind in the sending country? How and why the incentives to form human capital in the sending country will have a paradoxical effect on the migration policy of the receiving country? How and why will the level of a separating tax imposed by the destination country be reduced by the human capital formation calculus in the sending country? I conclude that the policy implications delineated in the paper illustrate the power and appeal of “The New Economics of the Brain Drain” as a framework for rethinking the formation of sound policy responses to migration.

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File URL: http://purl.umn.edu/98003
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Bibliographic Info

Paper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 98003.

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Date of creation: Dec 2010
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Handle: RePEc:ags:ubzefd:98003

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Keywords: The New Economics of the Brain Drain; Policy formation; Labor and Human Capital; Political Economy;

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  1. Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
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