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International Human Capital Formation, Brain Drain and Brain Gain: A conceptual Framework

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  • Bernard Franck

    (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes I - Université de Caen)

  • Robert F. Owen

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)

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    Abstract

    A two-country, two-period model of international migration highlights microeconomic foundations for examining the interrelation between brain drain, brain gain and the location of human capital formation, at home or abroad. Ex ante choices regarding where to study depend on relative qualities of university systems, individuals' abilities, sunk educational investment costs, government grants, and expected employment prospects in both countries. The analysis underscores an inherently widerange of conceivable positive or negative effects on domestic net welfare. These changes depend critically on the foregoing factors, as well as the optimal design of educational grant schemes, given eventual informational imperfections regarding individuals' capabilities.

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    Bibliographic Info

    Paper provided by HAL in its series Working Papers with number hal-00421166.

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    Date of creation: 01 Oct 2009
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    Handle: RePEc:hal:wpaper:hal-00421166

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    1. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series, Institute for Advanced Studies 45, Institute for Advanced Studies.
    2. Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998. "Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?," Departmental Working Papers, Chinese University of Hong Kong, Department of Economics _096, Chinese University of Hong Kong, Department of Economics.
    3. Kwok, Viem & Leland, Hayne, 1982. "An Economic Model of the Brain Drain," American Economic Review, American Economic Association, American Economic Association, vol. 72(1), pages 91-100, March.
    4. Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(528), pages 631-652, 04.
    5. Schiff, Maurice, 2005. "Brain gain : claims about its size and impact on welfare and growth are greatly exaggerated," Policy Research Working Paper Series 3708, The World Bank.
    6. Stark, Oded, 2003. "Rethinking The Brain Drain," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 18770, University of Bonn, Center for Development Research (ZEF).
    7. Barry Chiswick, 1999. "Are Immigrants Favorably Self-Selected?," American Economic Review, American Economic Association, American Economic Association, vol. 89(2), pages 181-185, May.
    8. 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.
    9. Katz, Eliakim & Stark, Oded, 1987. "International Migration under Asymmetric Information," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 97(387), pages 718-26, September.
    10. Donald Lien & Yan Wang, 2005. "Brain drain or brain gain: A revisit," Journal of Population Economics, Springer, Springer, vol. 18(1), pages 153-163, 07.
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