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Testing the 'Brain Gain' Hypothesis: Micro Evidence from Cape Verde

Author

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  • Batista, Catia

    (Nova School of Business and Economics)

  • Lacuesta, Aitor

    (Bank of Spain)

  • Vicente, Pedro C.

    (Nova School of Business and Economics)

Abstract

Does emigration really drain human capital accumulation in origin countries? This paper explores a unique household survey purposely designed and conducted to answer this research question. We analyze the case of Cape Verde, a country with allegedly the highest 'brain drain' in Africa, despite a marked record of income and human capital growth in recent decades. Our micro data enables us to propose the first explicit test of 'brain gain' arguments according to which the prospects of own future migration can positively impact educational attainment. According to our results, a 10pp increase in the probability of own future migration may improve the average probability of completing intermediate secondary schooling by 8pp for individuals who do not migrate before age 16. Strikingly, this same 10pp increase may raise the probability of completing intermediate secondary schooling by 11pp for an individual whose parents were both non migrants when the educational decision was made. Our findings are robust to the choice of instruments and econometric model. Overall, we find that there may be substantial human capital gains from lowering migration barriers.

Suggested Citation

  • Batista, Catia & Lacuesta, Aitor & Vicente, Pedro C., 2010. "Testing the 'Brain Gain' Hypothesis: Micro Evidence from Cape Verde," IZA Discussion Papers 5048, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5048
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    More about this item

    Keywords

    brain drain; Cape Verde; sub-Saharan Africa; effects of emigration in origin countries; international migration; human capital; brain gain; household survey;
    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
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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