IDEAS home Printed from https://ideas.repec.org/p/ags/ucdavw/190907.html
   My bibliography  Save this paper

A Gain with a Drain? Evidence from Rural Mexico on the New Economics of the Brain Drain

Author

Listed:
  • Boucher, Steve
  • Stark, Oded
  • Taylor, J. Edward

Abstract

Evidence is presented in support of the “brain gain” view that the likelihood of migrating to a destination wherein the returns to human capital (schooling) are high creates incentives to acquire human capital in migrant-sending areas. In Mexico, even though internal migrants are more educated than those who stay behind, the average level of schooling in the migrant-sending villages increases with internal migration. This finding is consistent with the hypothesis that the dynamic investment effects reverse the static, depletion effects of migration on schooling. Households’ access to high-skill internal migration networks significantly increases the likelihood that children will attend school beyond the compulsory level. Access to low-skill internal networks has the opposite effect. By contrast with internal migration, migration from rural Mexico to the U.S. does not select positively on schooling, nor does it significantly influence human capital formation, even though remittances from Mexican migrants in the U.S. far outweigh remittances from internal migrants.

Suggested Citation

  • Boucher, Steve & Stark, Oded & Taylor, J. Edward, 2005. "A Gain with a Drain? Evidence from Rural Mexico on the New Economics of the Brain Drain," Working Papers 190907, University of California, Davis, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:ucdavw:190907
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/190907/files/WP05-005.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    3. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
    4. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    5. Blomqvist, Ake G, 1986. "International Migration of Educated Manpower and Social Rates of Return to Education in LDCs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 165-174, February.
    6. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
    7. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
    8. Usher, Dan, 1977. "Public Property and the Effects of Migration upon Other Residents of the Migrants' Countries of Origin and Destination," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 1001-1020, October.
    9. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    10. Kochar, Anjini, 2004. "Urban influences on rural schooling in India," Journal of Development Economics, Elsevier, vol. 74(1), pages 113-136, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisca M. Antman, 2013. "The impact of migration on family left behind," Chapters,in: International Handbook on the Economics of Migration, chapter 16, pages 293-308 Edward Elgar Publishing.
    2. Shaun A. Golding & Katherine J. Curtis, 2013. "Migration and rural development: resettlement, remittances and amenities," Chapters,in: Handbook of Rural Development, chapter 6, pages i-ii Edward Elgar Publishing.
    3. Arias-Vazquez, Francisco Javier & Azuara, Oliver & Bernal, Pedro & Heckman, James J. & Villarreal, Cajeme, 2010. "Policies to Promote Growth and Economic Efficiency in Mexico," IZA Discussion Papers 4740, Institute of Labor Economics (IZA).
    4. J. Edward Taylor, 2006. "The relationship between international migration, trade, and development: some paradoxes and findings," Proceedings, Federal Reserve Bank of Dallas, pages 199-212.
    5. Stark, Oded & C Simon Fan, 2003. "Addition through Depletion: The Brain Drain as a Catalyst of Human Capital Formation and Economic Betterment," Royal Economic Society Annual Conference 2003 192, Royal Economic Society.
    6. Oded Stark & C. Simon Fan, 2007. "The Brain Drain, “Educated Unemployment,” Human Capital Formation, and Economic Betterment," CEDI Discussion Paper Series 07-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
    7. John P. Haisken-DeNew & Maren M. Michaelsen, 2011. "Migration Magnet: The Role of Work Experience in Rural-Urban Wage Diff erentials in Mexico," Ruhr Economic Papers 0263, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Donald Lien, 2007. "Quality assurance program and brain drain," Education Economics, Taylor & Francis Journals, vol. 16(1), pages 59-73.
    9. Calvin Z. Djiofack & Eric W. Djimeu & Matthieu Boussichas, 2014. "Editor's choice Impact of Qualified Worker Emigration on Poverty: A Macro–Micro-Simulation Approach for an African Economy," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 23(1), pages 1-52.
    10. Ludo Peeters, 2011. "Controlling For Heterogeneity And Asymmetry In Cross-Section Gravity Models Of Aggregate Migration: Evidence From Mexico," ERSA conference papers ersa10p329, European Regional Science Association.
    11. Maren Michaelsen & John Haisken-DeNew, 2015. "Migration magnet: the role of work experience in rural–urban wage differentials," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    12. repec:bla:etrans:v:15:y:2007:i:4:p:629-660 is not listed on IDEAS
    13. Bertoli Simone, 2006. "Remittances and the Dynamics of Human Capitalin the Recipient Country," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200607, University of Turin.
    14. repec:zbw:rwirep:0263 is not listed on IDEAS
    15. Michaelsen, Maren M. & Haisken-DeNew, John P., 2011. "Migration Magnet: The Role of Work Experience in Rural-Urban Wage Differentials in Mexico," Ruhr Economic Papers 263, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ucdavw:190907. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/daucdus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.