Brain Drain and Fiscal Competition. A theoretical model for the Europe
In this paper we study Brain Drain (BD) and Fiscal Competition (FC) in a unified framework for the European Union (EU) specific context. Potential mobility of educated workers can increase the degree of FC through taxation or the provision of public education. An increase in FC can be caused by competition among different jurisdictions that aim to attract educated workers. When the importance of FC increases, then the European States may employ FC as a new policy tool. First, we analyze FC and BD with reference to EU regions. In this instance, the EU may find incentive to control the interactions between BD and FC in order to coordinate fiscal policies and/or the provision of public goods as education. Second, we furthermore consider the entry of new state inside the EU. The absence of coordination implies that, in addition to the FC, a “migration competition” may be generated in EU, where the region inside the union try to attract educated workers of the new entry. We derive the conditions which BD leads to a decrease (increase) in welfare and growth for new entry country.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna|
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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 1001-20, October.
- Kwok, Viem & Leland, Hayne, 1982. "An Economic Model of the Brain Drain," American Economic Review, American Economic Association, vol. 72(1), pages 91-100, March.
- H. G. Grubel & A. D. Scott, 1966. "The Immigration of Scientists and Engineers to the United States, 1949-61," Journal of Political Economy, University of Chicago Press, vol. 74, pages 368.
- Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571.
- Straubhaar, Thomas, 2000. "International mobility of the highly skilled: Brain gain, brain drain or brain exchange," HWWA Discussion Papers 88, Hamburg Institute of International Economics (HWWA).
- Helliwell, J.F., 1999.
"Checking the Brain Drain: Evidence and Implications,"
99-3, California Davis - Institute of Governmental Affairs.
- Helliwell, J.F., 1999. "Checking the Brain Drain: Evidence and Implications," Papers 99-3, Institute for Policy Analysis.
- Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Report No. 3: Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute for the Study of Labor (IZA).
- Miyagiwa, K., 1989.
"Scale Economics In Education And The Brain Drain Problem,"
Discussion Papers in Economics at the University of Washington
89-09, Department of Economics at the University of Washington.
- Miyagiwa, Kaz, 1991. "Scale Economies in Education and the Brain Drain Problem," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 743-59, August.
- Miyagiwa, K., 1989. "Scale Economics In Education And The Brain Drain Problem," Working Papers 89-09, University of Washington, Department of Economics.
- Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- 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.
- Rodriguez, Carlos Alfredo, 1975. "On the Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 1065-72, October.
- McCulloch, Rachel & Yellen, Janet L., 1975. "Consequences of a tax on the brain drain for unemployment and income inequality in less developed countries," Journal of Development Economics, Elsevier, vol. 2(3), pages 249-264, September.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:481. 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: (Dipartimento Scienze Economiche, Universita' di Bologna)
If references are entirely missing, you can add them using this form.