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Brain Drain And Brain Waste

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  • ARMANDO J. GARCIA PIRES

    (Centre for Applied Research at NHH, Norwegian School of Economics, Norway)

Abstract

When skilled workers migrate, they face the brain waste risk, i.e., they can end up employed as unskilled. We analyze the effects of brain waste on brain drain, resulting from low international transferability of skills. We show that this type of brain waste: (1) reduces education incentives; (2) weakens the chances for a positive self-selection; and (3) decreases the possibility of a brain gain. In addition, the effectiveness of education policies that subsidize students is reduced under the presence of brain waste. Results are robust to introducing different migration costs for the skilled and the unskilled.

Suggested Citation

  • Armando J. Garcia Pires, 2015. "Brain Drain And Brain Waste," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 1-34, March.
    • Handle: RePEc:jed:journl:v:40:y:2015:i:1:p:1-34
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    More about this item

    Keywords

    Brain Drain; Brain Waste; Self-Selection; International Transferability of Human Capital;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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