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Return Migration, Human Capital Accumulation and the Brain Drain

Author

Listed:
  • Christian Dustmann

    (Department of Economics and Centre for Research and Analysis of Migration, University College London)

  • Itzhak Fadlon

    (Department of Economics, Harvard University)

  • Yoram Weiss

    (The Eitan Berglas School of Economics, Tel Aviv University)

Abstract

In this paper we present a model that explains migrations as decisions that respond to where human capital can be acquired more efficiently, and where the return to human capital is highest. The basic framework is a dynamic Roy model in which a worker possesses two distinct skills that can be augmented by learning by doing. There are different implicit prices, in different countries and different rates of skill accumulation. Our analysis contributes to the literature on the selection of immigrants and return migrants by offering a richer framework that may help to accommodate selection of emigrants and return migrants that are not immediately compatible with the one-dimensional skill model. Our analysis also has implications for the debate on brain drain and brain gain. In the two skills model presented here, return migration can lead to a mitigation of the brain drain, or even the creation of a "brain gain", where those who return bring the home country augmented local skills.

Suggested Citation

  • Christian Dustmann & Itzhak Fadlon & Yoram Weiss, 2010. "Return Migration, Human Capital Accumulation and the Brain Drain," CReAM Discussion Paper Series 1013, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1013
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    More about this item

    Keywords

    Return migration; human capital accumulation; comparative advantage; brain drain;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • F2 - International Economics - - International Factor Movements and International Business

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