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Brain Drain, Inequality and Growth

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  • Fabio, MARIANI

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper provides an additional channel through which inequality may influence growth, when labor migration is taken into account. In fact, we show that human capital distribution is crucial to determine whether allowing migration of the most skilled workers from a developing country may be beneficial for growth, from the perspective of the source economy. The net linked to a brain drain is more likely to be negative in the short run if human capital is very unequally distributed. In addition, we find that econometric analysis supports our theoretical claims : the estimation of different growth equations in a cross-section of developing countries, based on a brand new datset on skilled migration (Docquier and Marfouk, 2004) shows that a brain drain can have a positive impact only when it is associated with low inequality (in income or schooling).

Suggested Citation

  • Fabio, MARIANI, 2004. "Brain Drain, Inequality and Growth," LIDAM Discussion Papers IRES 2004033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2004033
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2004-33.pdf
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    References listed on IDEAS

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    1. Azariadis, Costas, 1996. "The Economics of Poverty Traps: Part One: Complete Markets," Journal of Economic Growth, Springer, vol. 1(4), pages 449-496, December.
    2. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    3. Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 501-526.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Daniele Checchi & Gianfranco De Simone & Riccardo Faini, 2007. "Skilled Migration, FDI and Human Capital Investment," Development Working Papers 235, Centro Studi Luca d'Agliano, University of Milano.
    2. Hung‐Ju Chen, 2009. "A Brain Gain Or A Brain Drain? Migration, Endogenous Fertility, And Human Capital Formation," Economic Inquiry, Western Economic Association International, vol. 47(4), pages 766-782, October.
    3. Elisabetta Lodigiani, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," DEM Discussion Paper Series 09-03, Department of Economics at the University of Luxembourg.

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    More about this item

    Keywords

    High-skilled migration; Inequality; Education;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • I20 - Health, Education, and Welfare - - Education - - - General

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