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A Brain Gain Or A Brain Drain? Migration, Endogenous Fertility, And Human Capital Formation

  • HUNG-JU CHEN

"This study develops an endogenous growth model of migration to analyze the impact of international migration on the economic growth of a source country. When making their fertility and education decisions, adults may have the option of migrating to a foreign country. We find that changes in the migration probability or the extent of migration costs will lead to a trade-off between the quality and the quantity of children. When a host country cannot differentiate between the abilities of migrants, an increase in migration probability will raise a source country's economic growth. When low- and high-skilled workers are faced with different migration probabilities, allowing more low-skilled workers to emigrate will cause a "brain gain" in both the short run and the long run. However, relaxation of restrictions on the emigration of high-skilled workers will damage economic growth in the long run, although a brain gain may occur in the short run."("JEL" F22, J24, O15) Copyright (c) 2009 Western Economic Association International.

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Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 47 (2009)
Issue (Month): 4 (October)
Pages: 766-782

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Handle: RePEc:bla:ecinqu:v:47:y:2009:i:4:p:766-782
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