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Do Brain Drain and Poverty Result from Coordination Failures?

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  • David de la Croix

    ()
    (IRES and CORE, Universite catholique de Louvain)

  • Frederic Docquier

    ()
    (National Fund for Scientific Research (Belgium) and IRES, Universite catholique de Louvain)

Abstract

We explore the complementarities between high-skill emigration and poverty in developing countries. We build a model endogenizing human-capital accumulation, high-skill migration and productivity. Two countries sharing the same characteristics may end up either in a "low poverty/low brain drain" path or in a "high poverty/high brain drain" path. After identifying country-specific parameters, we find that, for a majority of countries, the observed equilibrium has higher income than the other possible one. In 22 developing countries (including 20 small states with less than 2 million inhabitants), poverty and high brain drain are worsened by a coordination failure. For 25 other countries, a radical worsening of economic performances is feasible. These results are fairly robust to identification assumptions and the inclusion of a brain-gain mechanism.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1009.

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Date of creation: May 2010
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Handle: RePEc:crm:wpaper:1009

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Keywords: Public Good; Inequality Aversion; Immigration policy;

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Citations

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Cited by:
  1. Chrysovalantis VASILAKIS, 2014. "Globalized Market for Talents and Inequality: What Can Be Learnt from European Football?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2014001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Frédéric DOCQUIER & Tobias MÜLLER & Joaquín NAVAL, 2014. "Informality and long-run growth," Working Papers, FERDI P91, FERDI.
  3. Driouchi, Ahmed & Kadiri, Molk, 2010. "Emigration of Skilled Labor under Risk Aversion: The Case of Medical Doctors from Middle Eastern and North African Economies," MPRA Paper 22810, University Library of Munich, Germany, revised 20 May 2010.
  4. Vianney Dequiedt & Yves Zenou, 2011. "International Migration, Imperfect Information and Brain Drain," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011009, Norface Research Programme on Migration, Department of Economics, University College London.
  5. Harald Fadinger & Karin Mayr, 2012. "Skill-biased technological change, unemployment and brain drain," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2012011, Norface Research Programme on Migration, Department of Economics, University College London.
  6. Bénassy, Jean-Pascal & Brezis, Elise S., 2013. "Brain drain and development traps," Journal of Development Economics, Elsevier, Elsevier, vol. 102(C), pages 15-22.
  7. Frédéric DOCQUIER & Joël MACHADO & Khalid SEKKAT, 2012. "Efficiency gains from liberalizing labor mobility," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2012023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  8. David de la CROIX & Frédéric DOCQUIER & Maurice SCHIFF, 2013. "Brain Drain and Economic Performance in Small Island Developing States," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2013031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  9. Diana Loubaki, 2012. "On The Mechanics Of The Brain-Drain Reduction In Poorest Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, Chung-Ang Unviersity, Department of Economics, vol. 37(3), pages 75-106, September.

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