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A Brain Gain with a Brain Drain

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Author Info

  • Stark, Oded

    (Department of Economics, University of Oslo)

  • Helmenstein, Christian

    (Department of Finance, Institute for Advanced Studies, Vienna)

  • Prskawetz, Alexia

    (Institute for Demography, Austrian Academy of Sciences)

Abstract

We study human capital depletion and formation in an economy open to out-migration, as opposed to an economy which is closed. Under the natural assumption of asymmetric information, the enlarged opportunities and the associated different structure of incentives can give rise to a brain gain in conjunction with a brain drain. Migration by high-skill members of its workforce notwithstanding, the home country can end up with a higher average level of human capital per worker.

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File URL: http://www.ihs.ac.at/publications/eco/es-45.pdf
File Function: First version, 1997
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Bibliographic Info

Paper provided by Institute for Advanced Studies in its series Economics Series with number 45.

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Length: 10 pages
Date of creation: Jun 1997
Date of revision:
Handle: RePEc:ihs:ihsesp:45

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Related research

Keywords: Migration; Brain Drain; Skill Formation; Asymmetric Information;

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  1. Stark, Oded, 1995. " Return and Dynamics: The Path of Labor Migration When Workers Differ in Their Skills and Information Is Asymmetric," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(1), pages 55-71, March.
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