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International Human Capital Formation, Brain Drain and Brain Gain: A conceptual Framework

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  • Bernard Franck

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Robert F. Owen

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

A two-country, two-period model of international migration highlights microeconomic foundations for examining the interrelation between brain drain, brain gain and the location of human capital formation, at home or abroad. Ex ante choices regarding where to study depend on relative qualities of university systems, individuals' abilities, sunk educational investment costs, government grants, and expected employment prospects in both countries. The analysis underscores an inherently widerange of conceivable positive or negative effects on domestic net welfare. These changes depend critically on the foregoing factors, as well as the optimal design of educational grant schemes, given eventual informational imperfections regarding individuals' capabilities.

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  • Bernard Franck & Robert F. Owen, 2009. "International Human Capital Formation, Brain Drain and Brain Gain: A conceptual Framework," Working Papers hal-00421166, HAL.
    • Handle: RePEc:hal:wpaper:hal-00421166
    Note: View the original document on HAL open archive server: https://hal.science/hal-00421166
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    References listed on IDEAS

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