Brain Drain: Why Do Some Post-Secondary Graduates Choose to Work in the United States?
In this study, we examine the phenomenon of the brain drain in Canada, specifically the loss of certain post-secondary graduates to the United States. Our analysis comprises three components: a descriptive analysis of the differences between graduates who stayed in Canada and those who moved to the United States; a multivariate analysis, to identify the determinant factors of the decision to move from Canada to the United States and the decision to return to Canada afterwards; and analysis to explain the wage differentials between stayers and movers. Using the data for the last three cohorts from the National Graduates Survey, we observe that the brain drain remains relatively marginal, affecting 2% of new graduates at most. We also note a slight decrease in the brain drain for the Class of 2005 compared with the Class of 2000 in the first two years after graduation. In addition, we identify a strong movement to return to Canada (some 48% of those who left between 2000 and 2005) or a strong intention to do so (61% of the graduates of 2000 still living in the United States in 2005). Striking differences emerge in connection with certain factors, however, including level of education and field of study. For example, PhDs are by far the most likely to move to the United States. That also holds true for graduates in the fields of mathematics, computer and information sciences and architecture, engineering and related technologies. The wage differences are also high, in the order of 27% to 40% higher for graduates working in the United States, of which only one third can be explained by a variety of observable factors. Finally, we find that the graduates of 2000 who returned to Canada after a stay in the United States earned, in 2005, up to 18% more on average than those who never left Canada, all other things being equal. Canada thus benefits from the brain drain when it is not permanent. Whatever the case, we do not believe that at current levels, the brain drain of post-secondary graduates to the United States requires specific intervention on the part of public policymakers. However, the phenomenon should be monitored on an ongoing basis, as it may evolve in the future.
|Date of creation:||01 Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 1130 rue Sherbrooke Ouest, suite 1400, Montréal, Quéc, H3A 2M8|
Phone: (514) 985-4000
Fax: (514) 985-4039
Web page: http://www.cirano.qc.ca/
More information through EDIRC
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.:
- David Neumark, 1987.
"Employers' discriminatory behavior and the estimation of wage discrimination,"
Special Studies Papers
227, Board of Governors of the Federal Reserve System (U.S.).
- David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
- Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- Abdurrahman Aydemir & Mikal Skuterud, 2005.
"Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 38(2), pages 641-672, May.
- Aydemir, Abdurrahman & Skuterud, Mikal, 2004. "Explaining the Deteriorating Entry Earnings of Canada's Immigrant Cohorts: 1966-2000," Analytical Studies Branch Research Paper Series 2004225e, Statistics Canada, Analytical Studies Branch.
- Tamás Bartus, 2005. "Estimation of marginal effects using margeff," Stata Journal, StataCorp LP, vol. 5(3), pages 309-329, September.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
- Michel, BEINE & FrÃ©dÃ©ric, DOCQUIER & Hillel, RAPOPORT, 2006.
"Brain drain and human capital formation in developing countries : winners and losers,"
Discussion Papers (ECON - Département des Sciences Economiques)
2006023, Université catholique de Louvain, Département des Sciences Economiques.
- Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, vol. 118(528), pages 631-652, 04.
- 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.
When requesting a correction, please mention this item's handle: RePEc:cir:cirpro:2013rp-12. 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: (Webmaster)
If references are entirely missing, you can add them using this form.