Interstate migration and human capital formation in Brazil

Purpose - The purpose of this paper is to analyze the impact of interstate migration of individuals with different qualification levels on human capital formation in the migrant’s place of origin. Design/methodology/approach - A dynamic panel model with data from the National Household Sample Survey (Pesquisa Nacional por Amostra de Domicílios (PNAD)), between 2001 and 2013, is used. Findings - The results indicate that the migration of high-skilled people boosts school attendance in fifth grade elementary school and first year high school, but it does not affect the levels of those entering first year in higher education. However, the migration of low-skilled workers discourages people from entering higher education, as those living in less developed areas do not need higher education qualifications to get higher incomes. Thus, they migrate to developed areas with the education levels they already have. The brain gain hypothesis is not, therefore, confirmed in the context of higher education attendance. Originality/value - This paper’s contribution is its investigation into the effect of interstate migration on human capital formation in Brazil, through testing the brain gain hypothesis in a national context. In addition, it also analyzes the impact of the migration of people of low and intermediate qualification levels on human capital, with a view to verifying if the mobility of people with other levels of qualification could discourage the formation of human capital.