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Extending the case for a beneficial brain drain

Author

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  • Simone Bertoli

    () (University of Florence and IAB (Institute for Employment Research))

  • Herbert Brücker

    () (University of Bamberg and IAB (Institute for Employment Research))

Abstract

The recent literature about the so-called beneficial brain drain assumes that destination countries are characterized not only by higher wages than the source country, but also by a higher or at least not lower relative return to education. However, it is a well known stylized fact that the returns to education are higher in rich than in poor countries. Against this background, we assess whether the main prediction of this literature, namely the possibility of a beneficial brain gain, still holds under the reverse assumption. We show that there is a still a strong case for a beneficial brain drain, even if the returns to education in the source country exceed those in the destination country. Immigration policies that are biased against unskilled workers are not necessary for a beneficial brain drain to occur once one considers that agents face heterogeneous migration costs.

Suggested Citation

  • Simone Bertoli & Herbert Brücker, 2012. "Extending the case for a beneficial brain drain," Norface Discussion Paper Series 2012008, Norface Research Programme on Migration, Department of Economics, University College London.
  • Handle: RePEc:nor:wpaper:2012008
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    References listed on IDEAS

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    Cited by:

    1. Bertoli, Simone & Brücker, Herbert, 2011. "Selective immigration policies, migrants' education and welfare at origin," Economics Letters, Elsevier, vol. 113(1), pages 19-22, October.

    More about this item

    Keywords

    migration; brain drain; skill premium; heterogeneous agents; selective immigration policies;

    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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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