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Rethinking The Brain Drain

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  • Stark, Oded

Abstract

When productivity is fostered by both the individual's human capital and by the average level of human capital in the economy, individuals under-invest in human capital. A strictly positive probability of migration to a richer country, by raising both the level of human capital formed by optimizing individuals in the home country and the average level of human capital of non-migrants in the country, can enhance welfare and nudge the economy toward the social optimum. Under a well-controlled restrictive migration policy the welfare of all workers is higher than in the absence of this policy.

Suggested Citation

  • Stark, Oded, 2003. "Rethinking The Brain Drain," Discussion Papers 18770, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:18770
    DOI: 10.22004/ag.econ.18770
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    References listed on IDEAS

    as
    1. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    2. 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.
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    Keywords

    Labor and Human Capital;

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