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Emigration of Skilled Labor under Risk Aversion: The Case of Medical Doctors from Middle Eastern and North African Economies

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  • Driouchi, Ahmed
  • Kadiri, Molk

Abstract

This is a contribution to the new economics of skilled labor emigration that focuses on the mobility of medical doctors from sending Middle East and North African countries. Economic models under risk neutrality and aversion are used. The findings show that the relative expected benefits and the emigration rate have major effects on the net relative human medical capital that remains in the source country. The effects of relative wages in the destination and sending countries besides the yield of education are likely to change the emigration patterns. Comparisons of theoretical and observed relative human capital per country averages are conducted and ensured the statistical validity of the model. The empirical results based on the available data by Docquier and Marfouk (2006 and 2008) and Bhargava, Docquier and Moullan (2010) allowed further use of the model to understand the current trends in the emigration of medical doctors. These trends confirm the magnitude of relative wages besides the level of education and the attitude toward risk as determinants of the emigration of skilled labor. The countries included in the study are all exhibiting brain gain under 1991-2004 emigration data but two distinct groups of countries are identified. Each country is encouraged to anticipate the likely effects of this emigration on the economy with the increase of health demand, the domestic wages and the increase in education capacity for medical doctors.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22810.

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Date of creation: 20 May 2010
Date of revision: 20 May 2010
Handle: RePEc:pra:mprapa:22810

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Keywords: Medical skilled emigration; wages; human capital; risks.;

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  1. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-78, May.
  2. 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.
  3. Raj Chetty, 2006. "A New Method of Estimating Risk Aversion," American Economic Review, American Economic Association, vol. 96(5), pages 1821-1834, December.
  4. Abdeslam Marfouk, 2007. "Brain Drain in Developing Countries," World Bank Economic Review, World Bank Group, vol. 21(2), pages 193-218, June.
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  7. Frédéric Docquier & Hillel Rapoport, 2001. "Ethnic Discrimination and the Migration of Skilled Labor," Working Papers 2001-19, Department of Economics, Bar-Ilan University.
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Cited by:
  1. Brîndusa TILEA & Valentina VASILE & Ioan TILEA, 2013. "Labour Force Mobility And Employment Crisis In Health Care Sector In Romania," Romanian Journal of Economics, Institute of National Economy, vol. 36(1(45)), pages 30-54, June.
  2. repec:ine:journl:v:2:y:2013:i:44:p:21-45 is not listed on IDEAS

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