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International Migration, Remittances, and the Brain Drain

Author

Listed:
  • Ça?lar Özden
  • Maurice Schiff

Abstract

Knowledge of the economic effects of migration, especially its impact on economic development, is rather limited. In order to expand knowledge on migration, and identify policies and reforms that would lead to superior development outcomes, this volume presents the results of a first set of studies carried out on the subject. Current demographic trends in both developed and developing countries are pointing toward significant, potential economic gains from migration. The labor forces in many developed countries are expected to peak around 2010, and decline by around 5 percent in the following two decades, accompanied by a rapid increase in dependency ratios. Conversely, the labor forces in many developing countries are expanding rapidly, resulting in declines in dependency ratios. This imbalance is likely to create strong demand for workers in developed countries' labor markets, especially for numerous service sectors that can only be supplied locally. There are large north-south wage gaps, however, especially for unskilled and semiskilled labor. Part 1 of this book, Migration and Remittances, examines the determinants of migration, and the impact of migration and remittances on various development indicators, and measures of welfare. Among these are poverty and inequality; investments in education, health, housing and other productive activities; entrepreneurship; and child labor and education. It focuses on different source countries, use data collected via different methodologies, and employ different econometric tools. Their results, however, are surprisingly consistent. Part 2, Brain Drain, Brain Gain, Brain Waste, focuses on issues related to the migration of skilled workers, that is, the brain drain. It presents the most extensive database on bilateral skilled migration to date, and also examines a number of issues associated with the brain drain, that have not been emphasized in the literature so far, uncovers a number of interesting and unexpected patterns, and, provides answers to some of the debates. This volume deals essentially with economically motivated south-north migration, whose principal cause is, in most cases, the difference in (the present value of) expected real wages, adjusted for migration costs.

Suggested Citation

  • Ça?lar Özden & Maurice Schiff, 2006. "International Migration, Remittances, and the Brain Drain," World Bank Publications, The World Bank, number 6929, April.
  • Handle: RePEc:wbk:wbpubs:6929
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    References listed on IDEAS

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    5. Mattoo, Aaditya & Neagu, Ileana Cristina & Özden, Çaglar, 2008. "Brain waste? Educated immigrants in the US labor market," Journal of Development Economics, Elsevier, vol. 87(2), pages 255-269, October.
    6. Scott Stern & Michael E. Porter & Jeffrey L. Furman, 2000. "The Determinants of National Innovative Capacity," NBER Working Papers 7876, National Bureau of Economic Research, Inc.
    7. Bernt Bratsberg & James F. Ragan Jr., 2002. "The Impact of Host-Country Schooling on Earnings: A Study of Male Immigrants in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 63-105.
    8. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sapkota, Jeet Bahadur, 2011. "Impacts of globalization on quality of life: evidence from developing countries," MPRA Paper 37506, University Library of Munich, Germany.
    2. Jose Antonio Alonso, 2015. "Managing Labour Mobility: A Missing Pillar of Global Governance," CDP Background Papers 026, United Nations, Department of Economics and Social Affairs.
    3. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," Center for European, Governance and Economic Development Research Discussion Papers 209, University of Goettingen, Department of Economics.
    4. Pablo Acosta & Cesar Calderón & Pablo Fajnzylber & Humberto López, 2006. "Remittances and Development in Latin America," The World Economy, Wiley Blackwell, vol. 29(7), pages 957-987, July.
    5. Ronald Skeldon, 2008. "International Migration as a Tool in Development Policy: A Passing Phase?," Population and Development Review, The Population Council, Inc., vol. 34(1), pages 1-18.
    6. Elisabetta Lodigiani & Luca Marchiori & I-Ling Shen, 2016. "Revisiting the Brain Drain Literature with Insights from a Dynamic General Equilibrium World Model," The World Economy, Wiley Blackwell, vol. 39(4), pages 557-573, April.
    7. Gabriela Palos-Lucio & Mario Flores & Marta Rivera-Pasquel & V. Salgado-de-Snyder & Eric Monterrubio & Santiago Henao & Nayeli Macias, 2015. "Association between migration and physical activity of school-age children left behind in rural Mexico," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 60(1), pages 49-58, January.
    8. 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, May.
    9. Oprean Victor Bogdan, 2014. "Migration Costs in Asymmetric Environments and Education Outsourcing. The Case of Romania," Scientific Annals of Economics and Business, De Gruyter Open, vol. 61(1), pages 1-15, July.
    10. Martine Rutten, 2009. "The Economic Impact of Medical Migration: An Overview of the Literature," The World Economy, Wiley Blackwell, vol. 32(2), pages 291-325, February.
    11. Jamal Bouoiyour & Refk Selmi & Amal Miftah, 2017. "Relationship Between Remittances and Macroeconomic Variables in Times of Political and Social Upheaval: Evidence from Tunisia's Arab Spring," Working Papers 1140, Economic Research Forum, revised 09 2003.
    12. Khoudour-Castéras, David, 2007. "International migration and development: the socioeconomic impact of remittances in Colombia," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    13. Ahmed, Junaid & Martínez-Zarzoso, Inmaculada, 2015. "Do transfer costs matter for foreign remittances? A gravity model approach," Economics Discussion Papers 2015-12, Kiel Institute for the World Economy (IfW).
    14. Ahmed, Vaqar & Sugiyarto, Guntur & Jha, Shikha, 2010. "Remittances and Household Welfare: A Case Study of Pakistan," ADB Economics Working Paper Series 194, Asian Development Bank.
    15. Jean-François Bourg & Jean-Jacques Gouguet, 2010. "The Political Economy of Professional Sport," Books, Edward Elgar Publishing, number 13177.
    16. Aomar Ibourk & Jabrane Amaghouss, 2014. "Impact of Migrant Remittances on Economic Empowerment of Women: A Macroeconomic Investigation," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 597-611.
    17. Serafica, Ramonette B., 2016. "Sustaining the Competitiveness of Philippine Services," Philippine Journal of Development PJD 2014-2015 Vol. 41-42 , Philippine Institute for Development Studies.

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