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The impact of EU accession on human capital formation : can migration fuel a brain gain ?

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  • Farchy, Emily

Abstract

Can a brain drain be good for development? Many studies have established the theoretical possibility of such a brain gain. Yet it is only recently that the relaxation of data constraints has allowed for sound empirical assessments. In utilizing the dramatic policy change that accompanied European Union accession as a natural experiment, this paper is able to assuage fears of reverse causality between migration and human capital formation. The results highlight a significant impact of European Union accession on human capital formation indicating that the prospect of migration can indeed fuel skill formation even in the context of middle-income economies. And, if accompanied by policies to promote return migration, as well as a functioning credit market to enable private investment, international labor mobility could represent a powerful tool for growth.

Suggested Citation

  • Farchy, Emily, 2009. "The impact of EU accession on human capital formation : can migration fuel a brain gain ?," Policy Research Working Paper Series 4845, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4845
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    References listed on IDEAS

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    1. 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.
    2. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    3. Schiff, Maurice, 2005. "Brain Gain: Claims about Its Size and Impact on Welfare and Growth Are Greatly Exaggerated," IZA Discussion Papers 1599, Institute of Labor Economics (IZA).
    4. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    5. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    6. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
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    Cited by:

    1. Bergbauer, Annika B., 2019. "How did EU membership of Eastern Europe affect student achievement?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(6), pages 624-644.
    2. Barbara Dietz, 2010. "Migration and Remittances in Macedonia : A Review," Working Papers 281, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    3. Rizwana Siddiqui, 2013. "Impact Evaluation of Remittances for Pakistan: Propensity Score Matching Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(1), pages 17-44.
    4. Annika B. Bergbauer, 2019. "How Did EU Membership of Eastern Europe Affect Student Achievement?," ifo Working Paper Series 299, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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    Keywords

    Population Policies; Economic Theory&Research; Labor Policies; Tertiary Education; Access to Finance;
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