Micro evidence of the brain gain hypothesis: The case of Cape Verde
AbstractDoes emigration really drain human capital accumulation in origin countries? This paper explores a unique household survey purposely designed and conducted to answer this specific question for the case of Cape Verde. This is allegedly the African country suffering from the largest "brain drain", despite also having a fast-growing stock of human capital. Our micro data enables us to propose a novel, explicit test of "brain gain" arguments according to which the possibility of own future emigration positively impacts educational attainment in the origin country. The innovative empirical strategy we propose hinges on the ideal characteristics of our survey, namely on full histories of migrants and on a new set of exclusion restrictions. Our results point to a very substantial impact of the “brain gain” channel on the educational attainment of those who do not emigrate. Alternative channels (namely remittances, family disruption, and general equilibrium effects at the local level) are also considered, but do not seem to play an important role. Our findings are robust to the choice of instruments and the empirical model.
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Bibliographic InfoPaper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 0902.
Length: 46 pages
Date of creation: Feb 2009
Date of revision:
Brain drain; brain gain; international migration; human capital; effects of emigration in origin countries; household survey; Cape Verde; sub-Saharan Africa;
Find related papers by 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
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-04-05 (Africa)
- NEP-ALL-2009-04-05 (All new papers)
- NEP-EDU-2009-04-05 (Education)
- NEP-HRM-2009-04-05 (Human Capital & Human Resource Management)
- NEP-MIG-2009-04-05 (Economics of Human Migration)
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