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The Brain Drain between Knowledge Based Economies: the European Human Capital Outflows to the US

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  • Ahmed Tritah

Abstract

This paper uses the 1980, 1990, 2000 and 2006 U.S. micro censuses data to document the magnitude and nature of European human capital outflow to the United States. I found that while emigration is about a small number of individuals, the share of Europeans who are leaving is increasing as one moves along the educational distribution and ladder of occupations that matter the most in the knowledge economy. Next, using productivity based brain drain indices it is found that aggregate human capital conveyed by emigrants has increased since the 1990s. Finally, as a better understanding on the nature of human capital embodied in European emigrants, I show that the Europeans earn a positive wage premium relative to the US natives. Moreover, this premium is higher for the most recent expatriates cohorts, providing further evidence that the quality of European emigrants has increased.

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Bibliographic Info

Paper provided by CEPII research center in its series Working Papers with number 2008-08.

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Date of creation: Jun 2008
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Handle: RePEc:cii:cepidt:2008-08

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Keywords: Emigration; Brain-drain; Human capital; Knowledge economy; Europe-US;

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References

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  1. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 39(4), pages 1101-1136, December.
  2. Angel de la Fuente, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 576.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  3. Virginie Coudert & Cécile Couharde, 2009. "Currency Misalignments and Exchange Rate Regimes in Emerging and Developing Countries," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 17(1), pages 121-136, 02.
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Cited by:
  1. Frédéric Docquier & Hillel Rapoport, 2011. "Globalization, Brain Drain and Development," Working Papers, Bar-Ilan University, Department of Economics 2011-18, Bar-Ilan University, Department of Economics.
  2. Jürgen Janger & Klaus Nowotny, 2013. "Career choices in academia," WWWforEurope Working Papers series, WWWforEurope 36, WWWforEurope.
  3. Frédéric Docquier & Hillel Rapoport, 2009. "Documenting the Brain Drain of "La Crème de la Crème"," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(6), pages 679-705, December.

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