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Extending the case for a beneficial brain drain

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Abstract

The recent literature about the so called brain drain assumes that destination countries are characterized not only by higher wages than the source country, but also by a higher or at least not lower relative return to skill. As this assumption has a doubtful empirical validity, we assess whether the main prediction of this literature, namely the possibility of a beneficial brain gain, still holds under the reverse assumption. We show that there is still a case for a beneficial brain drain. Immigration policies that are biased against unskilled workers are not necessary for a beneficial brain drain to occur once one considers that agents face heterogeneous migration costs.

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Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2008_14.rdf.

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Length: 12 pag
Date of creation: 2008
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Handle: RePEc:frz:wpaper:wp2008_14.rdf

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Keywords: migration; brain drain; skill premium; heterogeneous agents; selective immigration policies;

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  1. Michéle V.K. Belot & Timothy J. Hatton, 2008. "Immigrant Selection in the OECD," CEPR Discussion Papers 571, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Michel BEINE & Frederic DOCQUIER & Caglar OZDEN, 2009. "Diasporas," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies.
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  6. Docquier, Frederic & Faye, Ousmane & Pestieau, Pierre, 2008. "Is migration a good substitute for education subsidies ?," Policy Research Working Paper Series 4614, The World Bank.
  7. Karin Mayr & Giovanni Peri, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," NRN working papers 2009-19, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
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  9. Frederic Docquier & Hillel Rapoport, 2007. "Skilled migration: the perspective of developing countries," CReAM Discussion Paper Series 0710, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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  11. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
  12. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
  13. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  14. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
  15. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
  16. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
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Cited by:
  1. Bertoli, Simone & Brücker, Herbert, 2010. "Selective Immigration Policies, Migrants' Education and Welfare at Origin," IZA Discussion Papers 5395, Institute for the Study of Labor (IZA).

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