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Emigration of Skilled Labor under Risk Aversion: The Case of Medical Doctors from Middle Eastern and North African Economies

  • Driouchi, Ahmed
  • Kadiri, Molk

This is a contribution to the new economics of skilled labor emigration that focuses on the mobility of medical doctors from sending Middle East and North African countries. Economic models under risk neutrality and aversion are used. The findings show that the relative expected benefits and the emigration rate have major effects on the net relative human medical capital that remains in the source country. The effects of relative wages in the destination and sending countries besides the yield of education are likely to change the emigration patterns. Comparisons of theoretical and observed relative human capital per country averages are conducted and ensured the statistical validity of the model. The empirical results based on the available data by Docquier and Marfouk (2006 and 2008) and Bhargava, Docquier and Moullan (2010) allowed further use of the model to understand the current trends in the emigration of medical doctors. These trends confirm the magnitude of relative wages besides the level of education and the attitude toward risk as determinants of the emigration of skilled labor. The countries included in the study are all exhibiting brain gain under 1991-2004 emigration data but two distinct groups of countries are identified. Each country is encouraged to anticipate the likely effects of this emigration on the economy with the increase of health demand, the domestic wages and the increase in education capacity for medical doctors.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22810.

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Date of creation: 20 May 2010
Date of revision: 20 May 2010
Handle: RePEc:pra:mprapa:22810
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  1. Beine, Michel & Docquier, Frédéric & Rapoport, Hillel, 2003. "Brain Drain and LDCs' Growth: Winners and Losers," IZA Discussion Papers 819, Institute for the Study of Labor (IZA).
  2. Raj Chetty, 2006. "A New Method of Estimating Risk Aversion," American Economic Review, American Economic Association, vol. 96(5), pages 1821-1834, December.
  3. Cohen, Daniel & Soto, Marcelo, 2001. "Growth and Human Capital: Good Data, Good Results," CEPR Discussion Papers 3025, C.E.P.R. Discussion Papers.
  4. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-78, May.
  5. Michel Beine & Frederic Docquier & Hillel Rapoport, 2009. "On the robustness of brain gain estimates," CReAM Discussion Paper Series 0917, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 341-368, 06.
  7. Docquier, Frédéric & Lowell, B. Lindsay & Marfouk, Abdeslam, 2007. "A Gendered Assessment of the Brain Drain," IZA Discussion Papers 3235, Institute for the Study of Labor (IZA).
  8. David de la Croix & Frederic Docquier, 2010. "Do Brain Drain and Poverty Result from Coordination Failures?," CReAM Discussion Paper Series 1009, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Frédéric Docquier & Hillel Rapoport, 2001. "Ethnic Discrimination and the Migration of Skilled Labor," Working Papers 2001-19, Bar-Ilan University, Department of Economics.
  10. Schechter, Laura, 2007. "Traditional trust measurement and the risk confound: An experiment in rural Paraguay," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 272-292, February.
  11. Docquier, Frederic & Rapoport, Hillel, 2004. "Skilled migration: the perspective of developing countries," Policy Research Working Paper Series 3382, The World Bank.
  12. Hartley, Roger & Lanot, Gauthier & Walker, Ian, 2006. "Who really wants to be a millionaire? Estimates of risk aversion from gameshow data," The Warwick Economics Research Paper Series (TWERPS) 747, University of Warwick, Department of Economics.
  13. Cicchetti, Charles J & Dubin, Jeffrey A, 1994. "A Microeconometric Analysis of Risk Aversion and the Decision to Self-Insure," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 169-86, February.
  14. Matthew Rabin & Richard H. Thaler, 2001. "Anomalies: Risk Aversion," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 219-232, Winter.
  15. Frederic DOCQUIER & Hillel RAPOPORT, 2009. "Documenting the brain drain of « la creme de la creme »: Three case-studies on international migration at the upper tail of the education distribution," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  16. Elisabetta Lodigiani, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," CREA Discussion Paper Series 09-03, Center for Research in Economic Analysis, University of Luxembourg.
  17. Frederic, DOCQUIER & Olivier, LOHEST & Abdeslam, MARFOUK, 2007. "Brain drain in developing countries," Discussion Papers (ECON - Département des Sciences Economiques) 2007004, Université catholique de Louvain, Département des Sciences Economiques.
  18. Cooper, Joseph C. & Hanemann, W. Michael & Signorello, Giovanni, 2001. "One-and-one-half-bound dichotomous choice contingent valuation," CUDARE Working Paper Series 921, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  19. Beine, Michel & Docquier, Frédéric & Oden-Defoort, Cecily, 2011. "A Panel Data Analysis of the Brain Gain," World Development, Elsevier, vol. 39(4), pages 523-532, April.
  20. Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute for the Study of Labor (IZA).
  21. Connel Fullenkamp & Rafael Tenorio & Robert Battalio, 2003. "Assessing Individual Risk Attitudes Using Field Data From Lottery Games," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 218-226, February.
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