IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_12053.html
   My bibliography  Save this paper

Brain Drain or Brain Dilution Tax: A Sending Country’s Perspective

Author

Listed:
  • Leonid V. Azarnert

Abstract

I investigate how taxing immigrants and redistributing the collected funds as educational subsidies influence human capital accumulation and growth in the source economy. The analysis is performed in a two-country growth model with endogenous fertility, in which public knowledge spillovers from the more advanced destination economy amplify the productivity of investment in children’s education in the sending country. I demonstrate that, while in the short run, the source economy accumulates more human capital if the subsidies are provided domestically, if the spillover effect is strong enough, in the long run, it can accumulate more human capital if education is subsidized in the destination country.

Suggested Citation

  • Leonid V. Azarnert, 2025. "Brain Drain or Brain Dilution Tax: A Sending Country’s Perspective," CESifo Working Paper Series 12053, CESifo.
    • Handle: RePEc:ces:ceswps:_12053
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/cesifo_wp12053.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    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:ces:ceswps:_12053. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.