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A Simple Model of Brain Circulation

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  • Nicolas Schmitt
  • Antoine Soubeyran

Abstract

This paper considers the allocation of two types of individuals differentiated by levels of talent within and between two countries when they choose to be workers or entrepreneurs. The equilibrium with international migrations requires both countries to be sufficiently different in talent endowments and is consistent with individuals moving in one or in both directions whether they are entrepreneurs or workers. Average welfare per capita falls in the country losing highly talented individuals and rises in the country attracting them. However, in both countries, the liberalization of migrations for immigrants, emigrants or both is always supported by majority voting.

Suggested Citation

  • Nicolas Schmitt & Antoine Soubeyran, 2005. "A Simple Model of Brain Circulation," CESifo Working Paper Series 1484, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_1484
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    References listed on IDEAS

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    1. Sanoussi Bilal & Jean-Marie Grether & Jaime de Melo, 2015. "Attitudes Towards Immigration: A Trade Theoretic Approach," World Scientific Book Chapters,in: Developing Countries in the World Economy, chapter 18, pages 439-453 World Scientific Publishing Co. Pte. Ltd..
    2. Stark, Oded, 2004. "Rethinking the Brain Drain," World Development, Elsevier, vol. 32(1), pages 15-22, January.
    3. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
    4. Grossman, Gene M, 1984. "International Trade, Foreign Investment, and the Formation of the Entrepreneurial Class," American Economic Review, American Economic Association, vol. 74(4), pages 605-614, September.
    5. Rauch, James E, 1991. "Reconciling the Pattern of Trade with the Pattern of Migration," American Economic Review, American Economic Association, vol. 81(4), pages 775-796, September.
    6. Lynne G. Zucker & Michael R. Darby, 1995. "Virtuous Circles of Productivity: Star Bioscientists and the Institutional Transformation of Industry," NBER Working Papers 5342, National Bureau of Economic Research, Inc.
    7. Manasse, Paolo & Turrini, Alessandro, 2001. "Trade, wages, and 'superstars'," Journal of International Economics, Elsevier, vol. 54(1), pages 97-117, June.
    8. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
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    Cited by:

    1. Udo Kreickemeier & Jens Wrona, 2017. "Two-Way Migration between Similar Countries," The World Economy, Wiley Blackwell, vol. 40(1), pages 182-206, January.
    2. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2014. "Immigration, occupational choice and public employment," CREA Discussion Paper Series 14-15, Center for Research in Economic Analysis, University of Luxembourg.
    3. Inga Heiland & Wilhelm Kohler, 2013. "Heterogeneous Workers, Trade, and Migration," CESifo Working Paper Series 4387, CESifo Group Munich.
    4. Dominique M. Gross & Nicolas Schmitt, 2006. "Why do Low- and High-Skill Workers Migrate? Flow Evidence from France," CESifo Working Paper Series 1797, CESifo Group Munich.
    5. Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 560-570, August.

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