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Human capital depletion, human capital formation, and migration: a blessing or a "curse"?

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  • Stark, Oded
  • Helmenstein, Christian
  • Prskawetz, Alexia

Abstract

We specify conditions under which a strictly positive probability of employment in a foreign country raises the level of human capital formed by optimizing workers in the home country. While some workers migrate, "taking along" more human capital than if they had migrated without factoring in the possibility of migration (a form of brain drain), other workers stay at home with more human capital than they would have formed in the absence of the possibility of migration (a form of brain gain).
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Suggested Citation

  • Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
    • Handle: RePEc:eee:ecolet:v:60:y:1998:i:3:p:363-367
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    1. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    2. World Bank, 1995. "World Development Report 1995," World Bank Publications - Books, The World Bank Group, number 5978, August.
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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