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Reversing the Brain Drain: Is it Beneficial?

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  • Hussain, Syed Muhammad

Abstract

This paper investigates costs and benefits of calling back expatriates of a developing country. I employ a life cycle model with a rich and poor country with endogenous migration and return migration. Cost of bringing back a worker is the compensation that is paid to him while the benefit is the increased output because of his higher skill level and positive externalities, which are empirically estimated, from him resulting in higher skill levels for local workers. Results show that welfare gains are maximized when workers with skill levels 1.28 standard deviations above the domestic mean skill level are called back.

Suggested Citation

  • Hussain, Syed Muhammad, 2015. "Reversing the Brain Drain: Is it Beneficial?," World Development, Elsevier, vol. 67(C), pages 310-322.
    • Handle: RePEc:eee:wdevel:v:67:y:2015:i:c:p:310-322
    DOI: 10.1016/j.worlddev.2014.10.023
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    References listed on IDEAS

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    1. Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011. "Return migration, human capital accumulation and the brain drain," Journal of Development Economics, Elsevier, vol. 95(1), pages 58-67, May.
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    Cited by:

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