Who Cares? Modelling the Care Drain

We discuss the effects of the care drain on human capital accumulation in developing countries, a potentially important downside of the phenomenon that has not been yet formally investigated: whilst recent literature on the brain drain suggests that it may not hamper human capital formation in developing countries, this may not be true with the care drain. We also discuss the effects of pressure for low-cost care in developed countries, pointing to the possibility of scenarios in which children's wellbeing and human capital accumulation are hampered in both developed and developing countries.