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Brain Drain, Educational Quality and Immigration Policy: Impact on Productive Human Capital in Source and Host Countries, with Canada as a Case Study

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  • Schiff, Maurice

    ()
    (World Bank)

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    Abstract

    With 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 "๐‘ž2 points system." It focuses on the policies' impact on immigrants' average productive human capital รขย€ย“ the product of educational quality and quantity รขย€ย“ or skill level, ๐‘†๐‘ฅ (for policy ๐‘ฅ). It shows, among others, that i) ๐‘†๐‘ฅ is greater under the ๐‘ž2 system than under the points system (๐‘†๐‘ž > ๐‘†โ„Ž); ii) a switch from a points system to a ๐‘ž2 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) ๐‘†๐‘ฅ is greater under the country-preference system than under the points system (๐‘†๐‘ > ๐‘†โ„Ž); iv) whether ๐‘†๐‘ฅ is greater under the ๐‘ž2 or the country-preference system is ambiguous, with ๐‘†๐‘ž >(

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7955.

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    Length: 21 pages
    Date of creation: Feb 2014
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    Handle: RePEc:iza:izadps:dp7955

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    Related research

    Keywords: points system; country-preference system; education quantity-quality system; Canadian immigration policy; human capital impact;

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    1. 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).
    2. 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.
    3. 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.
    4. 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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