The Balance of Brains: Corruption and High Skilled Migration
In a mobile labor market, a high emigration rate of high skilled workers is not necessarily a problem, if counterbalanced by a high immigration rate. However, some countries experience a net gain of high skilled while others a net loss. Corruption is part of the explanation, acting through two different channels: first, it pushes skilled natives to virtuous countries, where they can find a job based on meritocratic criteria; second, it discourages the entry of foreign talents, which would hardly have access to string-pulling recommendations. This might induce a prolonged loss in human capital and vanish investments in education.
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