Will Transition Countries Benefit or Lose from the Brain Drain?
We analyze the theoretical effects on growth and welfare in transition economies of emigration of educated and uneducated labor, of higher emigration probability, etc. Using a Grossman-Helpman growth model, we show that the prospects of labor market integration with the EU raises the expected returns to education, stimulate human capital formation and thus raise the growth rate in the candidate countries. However, given this expected returns, emigration of educated workers tends to lower growth and welfare of those remaining. Thus, while the brain drain reduces welfare, the effects of labor market integration could nevertheless be positive. Emigration of low skilled workers also reduces growth via adverse effects on education. Higher tuition fees, common in transition countries, counteract positive growth effects of market determined wages.
|Date of creation:||27 Dec 2002|
|Date of revision:|
|Publication status:||Published in International Journal of Economic Development , 2003.|
|Contact details of provider:|| Postal: Wallingatan 38, 4th floor S-111 24 Stockholm|
Web page: http://www.fief.se/
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.:
- Gene M. Grossman & Elhanan Helpman, 1989.
"Quality Ladders in the Theory of Growth,"
NBER Working Papers
3099, National Bureau of Economic Research, Inc.
- Lundborg, Per & Segerstrom, Paul S., 2002.
"The growth and welfare effects of international mass migration,"
Journal of International Economics,
Elsevier, vol. 56(1), pages 177-204, January.
- Lundborg, Per & Segerstrom, Paul S., 1998. "The Growth and Welfare Effects of International Mass Migration," Working Paper Series 146, Trade Union Institute for Economic Research.
- Miyagiwa, Kaz, 1991.
"Scale Economies in Education and the Brain Drain Problem,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 743-59, August.
- Miyagiwa, K., 1989. "Scale Economics In Education And The Brain Drain Problem," Discussion Papers in Economics at the University of Washington 89-09, Department of Economics at the University of Washington.
- Miyagiwa, K., 1989. "Scale Economics In Education And The Brain Drain Problem," Working Papers 89-09, University of Washington, Department of Economics.
- Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
- Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
- Nadeem U. Haque & Se-Jik Kim, 1995. "“Human Capital Flight”: Impact of Migration on Income and Growth," IMF Staff Papers, Palgrave Macmillan, vol. 42(3), pages 577-607, September.
- Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
- Lam, Kit-Chun, 2002. "Interaction between Economic and Political Factors in the Migration Decision," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 488-504, September.
When requesting a correction, please mention this item's handle: RePEc:hhs:fiefwp:0187. 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: (Sune Karlsson)
If references are entirely missing, you can add them using this form.