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The Inconsistency of "Brain Gain": The Schooling-Migration Nexus Revisited

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  • Andre Wolf

    (Hamburg Institute of International Economics, Germany)

Abstract

This paper analyzes the impact of emigration of high-skilled workers on the skill formation in a small sending country within an Overlapping Generations framework. In contrast to the preceding literature, emigration is explicitly modelled as the outcome of a deterministic decision-process and domestic wages respond endogenously to the outflow. It is shown that lowering emigration barriers in this general equilibrium framework never results into a positive long-run effect on human capital despite positive repercussions on schooling, which challenges the propositions of the more stylized class of 'brain gain' models. Implications for policy designs in developing countries as well as for empirical research are discussed.

Suggested Citation

  • Andre Wolf, 2014. "The Inconsistency of "Brain Gain": The Schooling-Migration Nexus Revisited," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(3), pages 35-49, September.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:3:p:35-49
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    References listed on IDEAS

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    More about this item

    Keywords

    Skilled Emigration; Human Capital; Overlapping Generations;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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