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Brain drain and factor complementarity

Author

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  • Pieretti, Patrice

    (Center for Mathematical Economics, Bielefeld University)

  • Zou, Benteng

    (Center for Mathematical Economics, Bielefeld University)

Abstract

In this paper we develop a neoclassical growth model that aggregates different types of labor skills from strict complementarity to perfect substitution. After having derived general balanced growth conditions and developed explicit growth paths for capital and aggregate labor force, the model serves to qualitatively study the effect of brain drain on income and wages of the source country.

Suggested Citation

  • Pieretti, Patrice & Zou, Benteng, 2011. "Brain drain and factor complementarity," Center for Mathematical Economics Working Papers 380, Center for Mathematical Economics, Bielefeld University.
  • Handle: RePEc:bie:wpaper:380
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    File URL: https://pub.uni-bielefeld.de/download/2315643/2319823
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    References listed on IDEAS

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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.
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    4. Manon Domingues Dos Santos & Fabien Postel-Vinay, 2003. "Migration as a source of growth: The perspective of a developing country," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(1), pages 161-175, February.
    5. 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.
    6. de La Grandville, Olivier, 1989. "In Quest of the Slutsky Diamond," American Economic Review, American Economic Association, vol. 79(3), pages 468-481, June.
    7. Stark, Oded, 2004. "Rethinking the Brain Drain," World Development, Elsevier, vol. 32(1), pages 15-22, January.
    8. Klump, Rainer & Preissler, Harald, 2000. " CES Production Functions and Economic Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 41-56, March.
    9. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
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    12. Abdeslam Marfouk, 2007. "Brain Drain in Developing Countries," World Bank Economic Review, World Bank Group, vol. 21(2), pages 193-218, June.
    13. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
    14. David J. McKenzie & Nicole Hildebrandt, 2005. "The Effects of Migration on Child Health in Mexico," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2005), pages 257-289, August.
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    Citations

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    Cited by:

    1. Arnaud Bourgain & Patrice Pieretti & Benteng Zou, 2008. "The Shortage of Medical Workers in Sub-Saharan Africa and Substitution Policy," CREA Discussion Paper Series 08-13, Center for Research in Economic Analysis, University of Luxembourg.
    2. Brambila Macias, Jose, 2008. "Remittances, Migration and Informality in Mexico. A Simple Model," MPRA Paper 8373, University Library of Munich, Germany.

    More about this item

    Keywords

    Brain drain; Migration; Complementarity; Growth;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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