The economic consequences of"brain drain"of the best and brightest: microeconomic evidence from five countries
Abstract
Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on many of these is very limited. Moreover, the lessons from case studies of benefits to China and India from skilled emigration may not be relevant to much smaller countries. This paper presents the results of innovative surveys which tracked academic high-achievers from five countries to wherever they moved in the world in order to directly measure at the micro level the channels through which high-skilled emigration affects the sending country. The results show that there are very high levels of emigration and of return migration among the very highly skilled; the income gainsto the best and brightest from migrating are very large, and an order of magnitude or more greater than any other effect; there are large benefits from migration in terms of postgraduate education; most high-skilled migrants from poorer countries send remittances; but that involvement in trade and foreign direct investment is a rare occurrence. There is considerable knowledge flow from both current and return migrants about job and study opportunities abroad, but little net knowledge sharing from current migrants to home country governments or businesses. Finally, the fiscal costs vary considerably across countries, and depend on the extent to which governments rely on progressive income taxation.Download Info
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5394.Length:
Date of creation: 01 Aug 2010
Date of revision:
Handle: RePEc:wbk:wbrwps:5394
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Keywords: Population Policies; Tertiary Education; Emerging Markets; Debt Markets; Economic Theory&Research;Other versions of this item:
- John Gibson & David McKenzie, 2012. "The Economic Consequences of ‘Brain Drain’ of the Best and Brightest: Microeconomic Evidence from Five Countries," Economic Journal, Royal Economic Society, vol. 122(560), pages 339-375, 05.
- John Gibson & David Mckenzie, 2010. "The Economic Consequences of ‘Brain Drain’ of the Best and Brightest: Microeconomic Evidence from Five Countries," Working Papers in Economics 10/05, University of Waikato, Department of Economics.
- John Gibson & David McKenzie, 2010. "The Economic Consequences of "Brain Drain" of the Best and Brightest: Microeconomic Evidence from Five Countries," CReAM Discussion Paper Series 1018, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Gibson, John & McKenzie, David, 2010. "The Economic Consequences of "Brain Drain" of the Best and Brightest: Microeconomic Evidence from Five Countries," IZA Discussion Papers 5124, Institute for the Study of Labor (IZA).
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-14 (All new papers)
- NEP-MIG-2010-08-14 (Economics of Human Migration)
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Blog mentions
As found by EconAcademics.org, the blog aggregator for Economics research:- The Economic Consequences of â??Brain Drainâ?
by Ariel Goldring in Free Market Mojo on 2010-09-05 12:16:06
Cited by:
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