Brain Drain, Educational Quality and Immigration Policy: Impact on Productive Human Capital in Source and Host Countries, with Canada as a Case Study
AbstractWith the 1967 reform, Canada's immigration policy changed from a country-preference system to a points system. The latter provides points according to applicants' education level but abstracts from the quality of their education. This paper considers the points system, the country-preference system, as well as a system that includes both educational quantity and quality and is termed the "𝑞2 points system." It focuses on the policies' impact on immigrants' average productive human capital â the product of educational quality and quantity â or skill level, 𝑆𝑥 (for policy 𝑥). It shows, among others, that i) 𝑆𝑥 is greater under the 𝑞2 system than under the points system (𝑆𝑞 > 𝑆ℎ); ii) a switch from a points system to a 𝑞2 system results in a human capital gain or net brain gain for Country 1 (the high-education quality country) and a loss or net brain drain for Country 2; iii) 𝑆𝑥 is greater under the country-preference system than under the points system (𝑆𝑝 > 𝑆ℎ); iv) whether 𝑆𝑥 is greater under the 𝑞2 or the country-preference system is ambiguous, with 𝑆𝑞 >(
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7955.
Length: 21 pages
Date of creation: Feb 2014
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Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- I20 - Health, Education, and Welfare - - Education - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-01 (All new papers)
- NEP-EDU-2014-03-01 (Education)
- NEP-INT-2014-03-01 (International Trade)
- NEP-MIG-2014-03-01 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aydemir, Abdurrahman, 2010.
"Immigrant Selection and Short-Term Labour Market Outcomes by Visa Category,"
IZA Discussion Papers
4966, Institute for the Study of Labor (IZA).
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- Simon Commander & Mari Kangasniemi & L. Alan Winters, 2004. "The Brain Drain: Curse or Boon? A Survey of the Literature," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 235-278 National Bureau of Economic Research, Inc.
- Serge Coulombe & Gilles Grenier & Serge Nadeau, 2012. "Human Capital Quality and the Immigrant Wage Gap," Working Papers, University of Ottawa, Department of Economics 1212E, University of Ottawa, Department of Economics.
- Alan G. Green & David A. Green, 1995. "Canadian Immigration Policy: The Effectiveness of the Point System and Other Instruments," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 28(4b), pages 1006-41, November.
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