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A Simple Model of Brain Circulation

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  • Nicolas Schmitt
  • Antoine Soubeyran

Abstract

This paper considers the allocation of two types of individuals differentiated by levels of talent within and between two countries when they choose to be workers or entrepreneurs. The equilibrium with international migrations requires both countries to be sufficiently different in talent endowments and is consistent with individuals moving in one or in both directions whether they are entrepreneurs or workers. Average welfare per capita falls in the country losing highly talented individuals and rises in the country attracting them. However, in both countries, the liberalization of migrations for immigrants, emigrants or both is always supported by majority voting.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2005/wp-cesifo-2005-06/cesifo1_wp1484.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1484.

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Date of creation: 2005
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Handle: RePEc:ces:ceswps:_1484

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  1. Stark, Oded, 2003. "Rethinking The Brain Drain," Discussion Papers 18770, University of Bonn, Center for Development Research (ZEF).
  2. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
  3. Paolo Manasse & Alessandro Turrini, 1999. "Trade, Wages and ´Superstars’," Development Working Papers 127, Centro Studi Luca d\'Agliano, University of Milano.
  4. Grossman, Gene M, 1984. "International Trade, Foreign Investment, and the Formation of the Entrepreneurial Class," American Economic Review, American Economic Association, vol. 74(4), pages 605-14, September.
  5. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  6. Lynne G. Zucker & Michael R. Darby, 1995. "Virtuous Circles of Productivity: Star Bioscientists and the Institutional Transformation of Industry," NBER Working Papers 5342, National Bureau of Economic Research, Inc.
  7. Rauch, James E, 1991. "Reconciling the Pattern of Trade with the Pattern of Migration," American Economic Review, American Economic Association, vol. 81(4), pages 775-96, September.
  8. Sanoussi Bilal & Jean-Marie Grether & Jaime de Melo, 2003. "Attitudes Towards Immigration: a Trade-Theoretic Approach," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 253-267, 05.
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Cited by:
  1. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2014. "Immigration, Occupational Choice and Public Employment," Working Papers 516, Bielefeld University, Center for Mathematical Economics.
  2. Inga Heiland & Wilhelm Kohler, 2013. "Heterogeneous Workers, Trade, and Migration," CESifo Working Paper Series 4387, CESifo Group Munich.
  3. Alexander Kemnitz, 2008. "Native Welfare Losses from High Skilled Immigration," CESifo Working Paper Series 2409, CESifo Group Munich.
  4. Dominique M. Gross & Nicolas Schmitt, 2006. "Why do Low- and High-Skill Workers Migrate? Flow Evidence from France," CESifo Working Paper Series 1797, CESifo Group Munich.

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