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Migration experience, aspirations and the brain drain theory and empirical evidence

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  • Böhme, Marcus H.
  • Glaser, Toni

Abstract

We develop a theoretical model of human skill formation and emigration. Additionally to existing brain drain models, we partly endogenize the heterogeneity of the individuals, by introducing aspirations. Emigration of an individual will result in a migration experience, which increases the migrant's aspirations. This will induce her to invest more in the education of her children back home. We find that this aspirations effect increases the average skill level in the society for a given migration rate. We show that the optimal migration rate that maximizes the post-migration skill-rate of the population is higher if we allow for the aspirations effect of migration. We use panel data from Indonesia to demonstrate that a migration experience has an aspirations increasing effect and calibrate our model accordingly. Our results suggest that there are potentially more countries than previously assumed which benefit from migration.

Suggested Citation

  • Böhme, Marcus H. & Glaser, Toni, 2014. "Migration experience, aspirations and the brain drain theory and empirical evidence," Kiel Working Papers 1956, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1956
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    More about this item

    Keywords

    migration; brain gain; aspirations; education;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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