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On the Robustness of Brain Gain Estimates

  • Michel Beine

    ()

    (University of Luxemburg and CES-Ifo)

  • Frédéric Docquier

    ()

    (FNRS and IRES, Université Catholique de Louvain)

  • Hillel Rapoport

    ()

    (Department of Economics, Bar-Ilan University, EQUIPPE (Universités de Lille) Université Catholique de Louvain, CReAM and CEPREMAP.)

Recent theoretical studies suggest that migration prospects can raise the expected return to human capital and thus foster education investment at home or, in other words, induce a brain gain. In a recent paper (Beine, Docquier and Rapoport, Economic Journal, 2008) we used the Docquier and Marfouk (2006) data set on emigration rates by education level to examine the impact of brain drain migration on gross (pre-migration) human capital formation in developing countries. We found a positive e¤ect of skilled migration prospects on human capital growth in a cross-section of 127 developing countries, with an elasticity of about 5 percent. In this paper we assess the robustness of our results to the use of alternative brain drain measures, de nitions of human capital, and functional forms. We nd that the results hold using the Beine et al. (2007) alternative brain drain measures controlling for whether migrants acquired their skills in the home or in the host country. We also regress other indicators of human capital investment on skilled migration rates and nd a positive e¤ect on youth literacy while the e¤ect on school enrolment depends on the exact speci cation chosen.

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Paper provided by Bar-Ilan University, Department of Economics in its series Working Papers with number 2009-19.

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Date of creation: Jul 2009
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Handle: RePEc:biu:wpaper:2009-19
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  1. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
  2. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  3. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
  4. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human Capital Depletion, Human Capital Formation, and Migration. A Blessing in a "Curse"?," Economics Series 55, Institute for Advanced Studies.
  5. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
  6. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  7. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2007. "Measuring international skilled migration: a new database controlling for age of entry," ULB Institutional Repository 2013/10411, ULB -- Universite Libre de Bruxelles.
  8. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  9. Frédéric DOCQUIER & Hillel RAPOPORT, 2003. "Endogenous discrimination, migration prospects and the protection of ethnic minorities," Annales d'Economie et de Statistique, ENSAE, issue 71-72, pages 79-95.
  10. Martin, Philippe & Rogers, Carol Ann, 1997. "Stabilization Policy, Learning-by-Doing, and Economic Growth," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 152-66, April.
  11. Ravi Kanbur & Hillel Rapoport, 2004. "Migration Selectivity and the Evolution of Spatial Inequality," Working Papers 2004-04, Bar-Ilan University, Department of Economics.
  12. Docquier, Frédéric & Rapoport, Hillel, 2007. "Skilled Migration: The Perspective of Developing Countries," IZA Discussion Papers 2873, Institute for the Study of Labor (IZA).
  13. Frédéric Docquier & Hillel Rapoport, 2001. "Ethnic Discrimination and the Migration of Skilled Labor," Working Papers 2001-19, Bar-Ilan University, Department of Economics.
  14. Xavier Sala-i-Martin, 1995. "Transfers, social safety nets and economic growth," Economics Working Papers 139, Department of Economics and Business, Universitat Pompeu Fabra.
  15. Frederic Docquier & Hillel Rapoport, 1999. "Fuite des cerveaux et formation de capital humain," Economie Internationale, CEPII research center, issue 79, pages 63-72.
  16. Peter J. Klenow & Andres Rodriguez-Clare, 2004. "Externalities and Growth," NBER Working Papers 11009, National Bureau of Economic Research, Inc.
  17. Michel Beine & Frédéric Docquier & Hillel Rapoport, . "Brain drain and human capital formation in developing countries: winners and losers?," ULB Institutional Repository 2013/10415, ULB -- Universite Libre de Bruxelles.
  18. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
  19. Abigail Barr, 1995. "The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana," CSAE Working Paper Series 1995-11, Centre for the Study of African Economies, University of Oxford.
  20. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
  21. Faini, Riccardo, 2003. "Is the Brain Drain an Unmitigated Blessing?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  22. William Carrington & Enrica Detragiache, 1998. "How Big is the Brain Drain?," IMF Working Papers 98/102, International Monetary Fund.
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