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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. Glenn Harrison & Morten Lau & Elisabet Rutstrom, 2004. "Estimating risk attitudes in denmark: A field experiment," Artefactual Field Experiments, The Field Experiments Website 00059, The Field Experiments Website.
  2. David Croix & Frédéric Docquier, 2012. "Do brain drain and poverty result from coordination failures?," Journal of Economic Growth, Springer, Springer, vol. 17(1), pages 1-26, March.
  3. Elisabetta Lodigiani, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," CREA Discussion Paper Series 09-03, Center for Research in Economic Analysis, University of Luxembourg.
  4. Raj Chetty, 2003. "A New Method of Estimating Risk Aversion," NBER Working Papers 9988, National Bureau of Economic Research, Inc.
  5. Michel, BEINE & Cecily, DEFOORT & Frédéric, DOCQUIER, 2007. "A Panel Data Analysis of the Brain Gain," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2007024, Université catholique de Louvain, Département des Sciences Economiques.
  6. Cooper, Joseph C. & Hanemann, W. Michael & Signorello, Giovanni, 2001. "One-and-one-half-bound dichotomous choice contingent valuation," CUDARE Working Paper Series, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy 921, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  7. Michel Beine & Frederic Docquier & Hillel Rapoport, 2009. "On the robustness of brain gain estimates," CReAM Discussion Paper Series 0917, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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  10. Laura Schechter, 2005. "Traditional trust measurement and the risk confound: An experiment in rural paraguay," Artefactual Field Experiments, The Field Experiments Website 00106, The Field Experiments Website.
  11. Frédéric Docquier & Hillel Rapoport, 2009. "Documenting the Brain Drain of «la Crème de la Crème»: Three Case-Studies on International Migration at the Upper Tail of the Education Distribution," Working Papers, Bar-Ilan University, Department of Economics 2009-25, Bar-Ilan University, Department of Economics.
  12. Docquier, Frédéric & Lowell, B. Lindsay & Marfouk, Abdeslam, 2007. "A Gendered Assessment of the Brain Drain," IZA Discussion Papers 3235, Institute for the Study of Labor (IZA).
  13. Cicchetti, Charles J & Dubin, Jeffrey A, 1994. "A Microeconometric Analysis of Risk Aversion and the Decision to Self-Insure," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 102(1), pages 169-86, February.
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  21. Abdeslam Marfouk, 2007. "Brain Drain in Developing Countries," World Bank Economic Review, World Bank Group, World Bank Group, vol. 21(2), pages 193-218, June.
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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, 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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