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Emigration, wage differentials and brain drain: the case of Suriname

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  • Tina Dulam
  • Philip Hans Franses

Abstract

In this article, we examine two hypotheses concerning emigration. The first hypothesis is that emigration is positively correlated with wage differentials. The second hypothesis concerns a positive correlation between emigration and higher education in the sending country (the so-called brain gain hypothesis). We analyse unique time-series data for Suriname for the period 1972-2009, for which we fit error correction models to disentangle short-run from long-run effects. We document moderate support for the first hypothesis, but we find strong support for the brain drain (and not brain gain) hypothesis. We conclude with implications of our findings for Suriname.

Suggested Citation

  • Tina Dulam & Philip Hans Franses, 2015. "Emigration, wage differentials and brain drain: the case of Suriname," Applied Economics, Taylor & Francis Journals, vol. 47(23), pages 2339-2347, May.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2339-2347
    DOI: 10.1080/00036846.2015.1005826
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    References listed on IDEAS

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    1. Eggert, Wolfgang & Krieger, Tim & Meier, Volker, 2010. "Education, unemployment and migration," Journal of Public Economics, Elsevier, vol. 94(5-6), pages 354-362, June.
    2. Beine, Michel & Docquier, Frédéric & Oden-Defoort, Cecily, 2011. "A Panel Data Analysis of the Brain Gain," World Development, Elsevier, vol. 39(4), pages 523-532, April.
    3. Batista, Catia & Lacuesta, Aitor & Vicente, Pedro C., 2012. "Testing the ‘brain gain’ hypothesis: Micro evidence from Cape Verde," Journal of Development Economics, Elsevier, vol. 97(1), pages 32-45.
    4. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    5. Steve Boucher & Oded Stark & J. Edward Taylor, 2009. "A Gain with a Drain? Evidence from Rural Mexico on the New Economics of the Brain Drain," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Corruption, Development and Institutional Design, chapter 6, pages 100-119, Palgrave Macmillan.
    6. Oded Stark, 2005. "The New Economics of the Brain Drain," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(2), pages 137-140, April.
    7. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
    8. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
    9. Abdeslam Marfouk, 2007. "Brain Drain in Developing Countries," The World Bank Economic Review, World Bank, vol. 21(2), pages 193-218, June.
    10. Docquier, Frédéric, 2006. "Brain Drain and Inequality Across Nations," IZA Discussion Papers 2440, Institute of Labor Economics (IZA).
    11. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
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    Cited by:

    1. Franses, Ph.H.B.F., 2015. "Return migration of high skilled workers," Econometric Institute Research Papers 78065, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    2. Dulam, T.W. & Franses, Ph.H.B.F., 2014. "Microeconomic determinants of skilled migration: The case of Suriname," Econometric Institute Research Papers EI 2014-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I20 - Health, Education, and Welfare - - Education - - - General

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