Should I stay or should I go? An institutional approach to brain drain
AbstractThis paper suggests that institutional factors which reward social net- works at the expenses of productivity can play an important role in ex- plaining brain drain. The eâ‚¬ects of social networks on brain drain are analyzed in a decision theory framework with asymmetric information. We distinguish between the role of insidership and personal connections. The larger the cost of being an outsider, the smaller is the number and the average ability of researchers working in the domestic job market. Per- sonal connections partly compensate for this eâ‚¬ect by attracting highly connected researchers back. However, starting from a world with no dis- tortions, personal connections also increase brain drain.
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Bibliographic InfoPaper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2010-12.
Date of creation: Jun 2010
Date of revision:
Brain Drain; Social Networks; Institutions; Asymmetric In- formation; Italian Academia;
Other versions of this item:
- Lea Cassar & Bruno S. Frey, 2010. "Should I stay or should I go? An institutional approach to brain drain," IEW - Working Papers 489, Institute for Empirical Research in Economics - University of Zurich.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- I20 - Health, Education, and Welfare - - Education - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-18 (All new papers)
- NEP-LTV-2010-06-18 (Unemployment, Inequality & Poverty)
- NEP-MIG-2010-06-18 (Economics of Human Migration)
- NEP-NET-2010-06-18 (Network Economics)
- NEP-SOC-2010-06-18 (Social Norms & Social Capital)
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