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The Brain Drain: Curse or Boon?

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Author Info
Commander, Simon () (London Business School, European Bank for Reconstruction and Development and IZA Bonn)
Kangasniemi, Mari (University of Sussex)
Winters, L. Alan (University of Sussex, CEPR and Centre for Economic Performance)
Abstract

The migration of skilled individuals from developing countries has typically been considered to be costly for the sending country, due to lost investments in education, high fiscal costs and labour market distortions. Economic theory, however, raises the possibility of a beneficial brain drain primarily through improved incentives to acquire human capital. Our survey of empirical and theoretical work shows under what circumstances a developing country can benefit from skilled migration. It argues that the sectoral aspects of migration and screening of migrants in the receiving country are of major importance in determining the welfare implications of the brain drain. These issues, as well as the size of the sending country, duration of migration and the effect of diaspora populations, should be addressed in future empirical work on skilled migration.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 809.

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Length: 38 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:iza:izadps:dp809

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Related research
Keywords: brain drain; migration; globalization;

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Find related papers by JEL classification:
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
F2 - International Economics - - International Factor Movements and International Business
O1 - Economic Development, Technological Change, and Growth - - Economic Development

References listed on IDEAS
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.:

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    Other versions:
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    Other versions:
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  17. David Ulph & L. Alan Winters, 1994. "Strategic Manpower Policy and International Trade," NBER Chapters, in: Empirical Studies of Strategic Trade Policy, pages 157-194 National Bureau of Economic Research, Inc. [Downloadable!]
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    Other versions:
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  26. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476.
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    Other versions:
  28. Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998. "Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?," Departmental Working Papers _096, Chinese University of Hong Kong, Department of Economics.
Full references

Cited by:
(explanations, 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.)

  1. Robert Holzmann, 2005. "Demographic Alternatives for Aging Industrial Countries: Increased Total Fertility Rate, Labor Force Participation, or Immigration," IZA Discussion Papers 1885, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank. [Downloadable!]
  3. Rod Tyers & Ian Bain & Jahnvi Vedi, 2006. "The global implications of freer skilled migration," ANUCBE School of Economics Working Papers 2006-468, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
    Other versions:
  4. Zakharenko, Roman, 2007. "Migration, Learning, and Development," MPRA Paper 6262, University Library of Munich, Germany. [Downloadable!]
  5. Ugo Fratesi & Massimiliano Riggi, 2004. "Migration and Regional Disparities: the Role of Skill Biased Flows," Urban/Regional 0407004, EconWPA. [Downloadable!]
  6. Zakharenko, Roman, 2008. "Return Migration: an Empirical Investigation," MPRA Paper 13755, University Library of Munich, Germany, revised Jan 2009. [Downloadable!]
  7. Rod Tyers & Iain Bain & Jahnvi Vedi, 2007. "The Global Economic Implications of Freer Skilled Migration," DEGIT Conference Papers c012_028, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
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