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International migration and the transfer system: A method to limit brain drain and excessive use of the welfare state

Author

Listed:
  • Frank Daumann

    (Friedrich Schiller University Jena)

  • Julian A Klöcker

    (Friedrich-Schiller University Jena)

Abstract

International migration can lead to a lack of human capital in the country of origin (brain drain) and, on the other hand, to excessive demands being placed on the welfare state in the destination country. The transfer system that was used for professional footballers moving from one club to another until the Bosman judgement can also be an efficient solution for migration. According-ly, depending on the amount of contributions an individual makes to the budget of the state of origin and the budget of the state of destination, the state of origin or the state of destination must pay a compensation to the other state. In this way, there is an appropriate compensation for the brain drain in the country of origin and for the burden of the welfare state in the destina-tion country. Our article adds an innovative and efficient proposal to the existing approaches to migration.

Suggested Citation

  • Frank Daumann & Julian A Klöcker, 2024. "International migration and the transfer system: A method to limit brain drain and excessive use of the welfare state," Economics Bulletin, AccessEcon, vol. 44(4), pages 1464-1468.
    • Handle: RePEc:ebl:ecbull:eb-24-00402
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    File URL: http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I4-P116.pdf
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    More about this item

    Keywords

    Migration; Coase theorem; transfer system; brain drain; welfare migration;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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