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The new economics of the brain drain

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  • Stark, Oded

Abstract

For nearly four decades now, the conventional wisdom has been that the migration of human capital (skilled workers) from a developing country to a developed country is detrimental to the developing country. However, this perception need not hold. A well designed migration policy can result in a “brain gain” to the developing country rather than in just a “brain drain” from it, as well as in a welfare increase for all of its workers - migrants and non-migrants alike - as new research suggests.

Suggested Citation

  • Stark, Oded, 2005. "The new economics of the brain drain," MPRA Paper 30939, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30939
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    Keywords

    migration; human capital formation; externalities; social welfare;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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