Advanced Search
MyIDEAS: Login

Brain Drain or Brain Gain?Micro Evidence from an African Success Story

Contents:

Author Info

  • Catia Batista
  • Pedro C. Vicente

Abstract

Does emigration really drain human capital accumulation in origin countries? This paper explores a unique household survey designed and conducted to answer this specific question for the case of Cape Verde - the sub-Saharan African country with the largest fraction of tertiary-educated population living abroad, despite also having a fast-growing stock of human capital. Unlike previous literature, the ideal characteristics of our tailored survey allow us to explicitly test brain gain arguments according to which the possibility of own future emigration positively contributes to educational attainment in the origin country. In particular, we introduce a new method to estimate this effect by using full histories of current and return migrants (which enable controlling for migrant selection on unobservables), and a new set of exclusion restrictions both at the regional and household levels. Our results are robust to the inclusion of controls for remittances, family disruption, and general equilibrium effects of emigration. In constructing a counterfactual distribution of skills to answer our research question, we combine the survey data with information from censuses of the destination countries to account for the characteristics of the labour force that is (permanent and temporarily) lost due to emigration. Our results point to commonly used brain drain figures to be significantly exaggerated, whereas there may be substantial brain gains from allowing free migration and encouraging return migration.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.economics.ox.ac.uk/materials/working_papers/paper343.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 343.

as in new window
Length:
Date of creation: 01 Aug 2007
Date of revision:
Handle: RePEc:oxf:wpaper:343

Contact details of provider:
Postal: Manor Rd. Building, Oxford, OX1 3UQ
Email:
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC

Related research

Keywords: Brain Drain; Brain Gain; International Migration; Human Capital; Effects of Emigration in Origin Countries; Household Survey; Cape Verde; Sub-Saharan Africa;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  3. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
  4. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  5. Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
  6. McKenzie, David & Gibson, John & Stillman, Steven, 2013. "A land of milk and honey with streets paved with gold: Do emigrants have over-optimistic expectations about incomes abroad?," Journal of Development Economics, Elsevier, vol. 102(C), pages 116-127.
  7. McKenzie, David & Rapoport, Hillel, 2006. "Can migration reduce educational attainment ? Evidence from Mexico," Policy Research Working Paper Series 3952, The World Bank.
  8. Miyagiwa, K., 1989. "Scale Economics In Education And The Brain Drain Problem," Discussion Papers in Economics at the University of Washington 89-09, Department of Economics at the University of Washington.
  9. Jasso, Guillermina & Rosenzweig, Mark R., 2008. "Selection Criteria and the Skill Composition of Immigrants: A Comparative Analysis of Australian and U.S. Employment Immigration," IZA Discussion Papers 3564, Institute for the Study of Labor (IZA).
  10. Per Krusell & Lee E. Ohanian & Jose-Victor Rios-Rull & Giovanni L. Violante, 1997. "Capital-skill complementarity and inequality: a macroeconomic analysis," Staff Report 239, Federal Reserve Bank of Minneapolis.
  11. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies.
  12. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
  13. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2002. "Brain Drain and LDCs' Growth: Winners and Losers," Working Papers 2002-08, Department of Economics, Bar-Ilan University.
  14. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
  15. George J. Borjas & Stephen G. Bronars & Stephen J. Trejo, 1992. "Self-Selection and Internal Migration in the United States," NBER Working Papers 4002, National Bureau of Economic Research, Inc.
  16. Alice Mesnard & Martin Ravallion, 2006. "The Wealth Effect on New Business Startups in a Developing Economy," Economica, London School of Economics and Political Science, vol. 73(291), pages 367-392, 08.
  17. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
  18. Rivera-Batiz, Francisco L., 1989. "The impact of international migration on real wages : Another look," Journal of Development Economics, Elsevier, vol. 31(1), pages 185-192, July.
  19. Hatton, Timothy J. & Williamson, Jeffrey G., 2001. "Demographic and Economic Pressure on Emigration out of Africa," IZA Discussion Papers 250, Institute for the Study of Labor (IZA).
  20. Aitor Lacuesta, 2006. "Emigration and human capital: who leaves, who comes back and what difference does it make?," Banco de Espa�a Working Papers 0620, Banco de Espa�a.
  21. Stokey, Nancy L, 1996. " Free Trade, Factor Returns, and Factor Accumulation," Journal of Economic Growth, Springer, vol. 1(4), pages 421-47, December.
  22. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
  23. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  24. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
  25. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
  26. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
  27. Randall Akee, 2010. "Who Leaves? Deciphering Immigrant Self-Selection from a Developing Country," Economic Development and Cultural Change, University of Chicago Press, vol. 58(2), pages 323-344, 01.
  28. Prachi Mishra, 2006. "Emigration and Brain Drain," IMF Working Papers 06/25, International Monetary Fund.
  29. James E. Rauch & Vitor Trindade, 1999. "Ethnic Chinese Networks in International Trade," NBER Working Papers 7189, National Bureau of Economic Research, Inc.
  30. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August.
  31. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  32. Catia Batista, 2008. "Why Doesn't Labor Flow from Poor to Rich Countries? Micro Evidence from the European Integration Experience," Economics Series Working Papers 402, University of Oxford, Department of Economics.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Karin Mayr & Giovanni Peri, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," NRN working papers 2009-19, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  2. Docquier, Frederic & Faye, Ousmane & Pestieau, Pierre, 2008. "Is migration a good substitute for education subsidies ?," Policy Research Working Paper Series 4614, The World Bank.
  3. Lutz Schneider & Alexander Kubis & D. Wiest, 2010. "Selektivität, soziale Bindung und räumliche Mobilität –Eine Analyse der Rückkehrpräferenz," IWH Discussion Papers 17, Halle Institute for Economic Research.
  4. Monteleone, Simona & Torrisi, Benedetto, 2010. "A Micro Data Analisys Of Italy’s Brain Drain," MPRA Paper 20995, University Library of Munich, Germany.
  5. Simona Monteleone, 2009. "Brain drain e crescita economica: Una rassegna critica sugli effetti prodotti," Working Papers 2_2009, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  6. Batista, Catia & Lacuesta, Aitor & Vicente, Pedro C., 2012. "Testing the ‘brain gain’ hypothesis: Micro evidence from Cape Verde," Journal of Development Economics, Elsevier, vol. 97(1), pages 32-45.
  7. Antman, Francisca M., 2012. "The Impact of Migration on Family Left Behind," IZA Discussion Papers 6374, Institute for the Study of Labor (IZA).
  8. Satish Chand & Michael A. Clemens, 2008. "Skilled emigration and skill creation: A quasi-experiment," International and Development Economics Working Papers idec08-05, International and Development Economics.
  9. Kristina A. Schapiro, 2009. "Migration and Educational Outcomes of Children," Human Development Research Papers (2009 to present) HDRP-2009-57, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Oct 2009.
  10. Daniela Federici & Marilena Giannetti, 2008. "Temporary migration and foreign direct investment," Working Papers 2008-03, Universita' di Cassino, Dipartimento di Scienze Economiche.
  11. Simona Monteleone & Benedetto Torrisi, 2010. "A micro data analysis of Italy’s brain drain," Discussion Papers 4_2010, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  12. Maimunah Ismail & Mageswari Kunasegaran & Roziah Mohd Rasdi, 2014. "Evidence Of Reverse Brain Drain In Selected Asian Countries: Human Resource Management Lessons For Malaysia," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 5(1).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:343. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.