Brain gain : claims about its size and impact on welfare and growth are greatly exaggerated
Based on static partial equilibrium analysis, the"new brain drain"literature argues that, by raising the return to education, a brain drain generates a brain gain that is, under certain conditions, larger than the brain drain itself, and that such a net brain gain results in an increase in welfare and growth due to education's positive externalities. This paper argues that these claims are exaggerated. In the static case, and based on both partial and general equilibrium considerations, the paper shows that (1) the size of the brain gain is smaller than suggested in that literature; (2) the impact on welfare and growth is smaller as well (for any brain gain size); (3) a positive brain gain is likely to result in a smaller, possibly negative, human capital gain; (4) an increase in the stock of human capital may have a negative impact on welfare and growth; and (5) in a dynamic framework, the paper shows that the steady-state brain gain is equal to the brain drain so that a'beneficial brain drain'cannot take place, and a net brain loss is likely during the transition.
|Date of creation:||01 Sep 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
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.:
- Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003.
"Long-term consequences of early childhood malnutrition,"
168, International Food Policy Research Institute (IFPRI).
- Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
- Harold Alderman & John Hoddinott & Bill Kinsey, 2004. "Long Term Consequences Of Early Childhood Malnutrition," HiCN Working Papers 09, Households in Conflict Network.
- Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003. "Long-term consequences of early childhood malnutrition," FCND discussion papers 168, International Food Policy Research Institute (IFPRI).
- Frederic, DOCQUIER & Hillel, RAPOPORT, 2007.
"Silled migration : the perspectives of developing countries,"
Discussion Papers (ECON - Département des Sciences Economiques)
2007017, Université catholique de Louvain, Département des Sciences Economiques.
- Docquier, Frédéric & Rapoport, Hillel, 2007. "Skilled Migration: The Perspective of Developing Countries," IZA Discussion Papers 2873, Institute for the Study of Labor (IZA).
- Frederic Docquier & Hillel Rapoport, 2007. "Skilled migration: the perspective of developing countries," CReAM Discussion Paper Series 0710, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Docquier, Frederic & Rapoport, Hillel, 2004. "Skilled migration: the perspective of developing countries," Policy Research Working Paper Series 3382, The World Bank.
- Stark, Oded & C Simon Fan, 2003. "Addition through Depletion: The Brain Drain as a Catalyst of Human Capital Formation and Economic Betterment," Royal Economic Society Annual Conference 2003 192, Royal Economic Society.
- Pierpaolo Giannoccolo, 2004.
"The Brain Drain. A Survey of the Literature,"
20060302, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica, revised Mar 2006.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001.
"Brain drain and economic growth: theory and evidence,"
Journal of Development Economics,
Elsevier, vol. 64(1), pages 275-289, February.
- Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
- John Strauss & Duncan Thomas, 1998.
"Health, Nutrition, and Economic Development,"
Journal of Economic Literature,
American Economic Association, vol. 36(2), pages 766-817, June.
- Schiff, Maurice & Valdes, Alberto, 1990. "Nutrition: Alternative Definitions and Policy Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 281-92, January.
- Ramón López & Maurice Schiff, 1998. "Migration and the Skill composition of the Labor Force: The Impact of Trade Liberalization in LDCs," Canadian Journal of Economics, Canadian Economics Association, vol. 31(2), pages 318-336, May.
- Jean-Pierre Vidal, 1998. "The effect of emigration on human capital formation," Journal of Population Economics, Springer, vol. 11(4), pages 589-600.
- Stark, Oded, 2003.
"Rethinking The Brain Drain,"
18770, University of Bonn, Center for Development Research (ZEF).
- Kugler, Maurice & Rapoport, Hillel, 2005.
"Skilled emigration, business networks and foreign direct investment,"
Discussion Paper Series In Economics And Econometrics
0503, Economics Division, School of Social Sciences, University of Southampton.
- Maurice Kugler & Hillel Rapoport, 2005. "Skilled Emigration, Business Networks and Foreign Direct Investment," CESifo Working Paper Series 1455, CESifo Group Munich.
- William Carrington & Enrica Detragiache, 1998. "How Big is the Brain Drain?," IMF Working Papers 98/102, International Monetary Fund.
- Solimano, Andres, 2001. "International migration and the global economic order : an interview," Policy Research Working Paper Series 2720, The World Bank.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Simon Commander & Mari Kangasniemi & L. Alan Winters, 2004. "The Brain Drain: Curse or Boon? A Survey of the Literature," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 235-278 National Bureau of Economic Research, Inc.
- Mattoo, Aaditya & Neagu, Ileana Cristina & Ozden, Caglar, 2005.
"Brain waste? Educated immigrants in the U.S. labor market,"
Policy Research Working Paper Series
3581, The World Bank.
- Mattoo, Aaditya & Neagu, Ileana Cristina & Özden, Çaglar, 2008. "Brain waste? Educated immigrants in the US labor market," Journal of Development Economics, Elsevier, vol. 87(2), pages 255-269, October.
- Adams, Richard H. Jr., 2003. "International migration, remittances, and the brain drain ; a study of 24 labor exporting countries," Policy Research Working Paper Series 3069, The World Bank.
- Dora L. Costa, 2003. "Health and Labor Force Participation over the Life Cycle: Evidence from the Past," NBER Books, National Bureau of Economic Research, Inc, number cost03-1, 07.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3708. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.