Recent theoretical studies suggest that migration prospects can raise the expected return to human capital and thus foster education investment at home or, in other words, induce a brain gain. In a recent paper (Beine, Docquier and Rapoport, Economic Journal, 2008) we used the Docquier and Marfouk (2006) data set on emigration rates by education level to examine the impact of brain drain migration on gross (pre-migration) human capital formation in developing countries. We found a positive effect of skilled migration prospects on human capital growth in a cross-section of 127 developing countries, with an elasticity of about 5 percent. In this paper we assess the robustness of our results to the use of alternative brain drain measures, definitions of human capital, and functional forms. We find that the results hold using the Beine et al. (2007) alternative brain drain measures controlling for whether migrants acquired their skills in the home or in the host country. We also regress other indicators of human capital investment on skilled migration rates and find a positive effect on youth literacy while the effect on school enrolment depends on the exact specification chosen.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
4293.
Length: 29 pages Date of creation: Jul 2009 Date of revision: Publication status: forthcoming in Annales d'Economie et de Statistique Handle: RePEc:iza:izadps:dp4293
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration
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Klenow, Peter J. & Rodriguez-Clare, Andres, 2005.
"Externalities and Growth,"
Handbook of Economic Growth,
in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 11, pages 817-861
Elsevier.
[Downloadable!] (restricted)
Other versions:
Peter J. Klenow & Andres Rodriguez-Clare, 2004.
"Externalities and Growth,"
NBER Working Papers
11009, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)