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A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy

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  • Alexander Haupt
  • Tim Krieger
  • Thomas Lange

Abstract

In this note, we present a novel channel for a brain gain. Students from a developing country study in a developed host country. A higher permanent migration probability of these students appears to be a brain drain for the developing country in the first place. However, it induces the host country to improve its education quality, as a larger share of the generated benefits accrue in this host country. A higher education quality raises in turn the human capital of the returning students. As long as the permanent migration probability is not too large, this positive effect causes both aggregate and per-capita human capital to increase in the developing country. Thus, a brain gain occurs.

Suggested Citation

  • Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," CESifo Working Paper Series 3154, CESifo.
    • Handle: RePEc:ces:ceswps:_3154
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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. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
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    6. 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.
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    8. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    9. Haupt, Alexander & Krieger, Tim & Lange, Thomas, 2010. "Competition for the International Pool of Talents : Education Policy with Student Mobility," CCES Discussion Paper Series 31, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
    10. Jonathan Chaloff & Georges Lemaître, 2009. "Managing Highly-Skilled Labour Migration: A Comparative Analysis of Migration Policies and Challenges in OECD Countries," OECD Social, Employment and Migration Working Papers 79, OECD Publishing.
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    12. Alexander Haupt & Eckhard Janeba, 2009. "Education, redistribution and the threat of brain drain," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(1), pages 1-24, February.
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    Cited by:

    1. Beine, Michel & Noël, Romain & Ragot, Lionel, 2014. "Determinants of the international mobility of students," Economics of Education Review, Elsevier, vol. 41(C), pages 40-54.
    2. Elsayyad, May & Konrad, Kai A., 2012. "Fighting multiple tax havens," Journal of International Economics, Elsevier, vol. 86(2), pages 295-305.
    3. Alexander Haupt & Tim Krieger & Thomas Lange, 2011. "Competition for the International Pool of Talent: Education Policy and Student Mobility," Working Papers CIE 35, Paderborn University, CIE Center for International Economics.
    4. Gega Todua, 2017. "Financing Education Abroad: A Developing Country Perspective," CERGE-EI Working Papers wp608, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Chankseliani, Maia, 2018. "The politics of student mobility: Links between outbound student flows and the democratic development of post-Soviet Eurasia," International Journal of Educational Development, Elsevier, vol. 62(C), pages 281-288.

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    More about this item

    Keywords

    brain gain; education policy; human capital; return migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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