Brain Drain Or Brain Gain The New Economics Of Brain Drain Reconsidered
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| Author | : Jan Brzozowski |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
The debate on the economic implications of skilled migration for the home countries is a long-lasting phenomenon. This issue has been discussed for almost fifty years. During this period, most of the scholars (eg. Bhagwati and Hamada 1974, Portes, 1976) believed that skilled migration is detrimental for the countries of origin, while the host economies benefited from the inflow of skilled labor. Thus the notion of brain drain - harmful for the developing economies, and brain gain - profitable for developed countries - came into being, and is still present in the literature. However, in the mid of 1990s, a new strand of research on skilled migration became visible. This new school - the new economics of brain drain - argued that brain drain must not be detrimental for the countries of origin. Under certain circumstances, migration of professionals from developing economies may be in fact a "blessing in disguise" - and the potential gains could be higher than costs. The economists (such as Mountford, 1997, Beine et al., 2001 and 2003, Stark, 2005) from the new economics of brain drain have renewed the discussion on the economic consequences of skilled migration. However, their optimistic view of brain drain has been heavily criticized. The paper presents the main propositions of this new approach. Then it discusses the claims of the opponents of new economics of brain drain and brings new explanations why the brain drain is detrimental: both on theoretical and empirical ground.
| Author | : Maurice Schiff |
| Publisher | : World Bank Publications |
| Total Pages | : 41 |
| Release | : 2005 |
| Genre | : Brain drain |
| ISBN | : |
"Based on static partial equilibrium analysis, the "new brain drain" literature argues that, by raising the return to education, a brain drain generates a brain gain that is, under certain conditions, larger than the brain drain itself, and that such a net brain gain results in an increase in welfare and growth due to education's positive externalities. This paper argues that these claims are exaggerated. In the static case, and based on both partial and general equilibrium considerations, the paper shows that (1) the size of the brain gain is smaller than suggested in that literature; (2) the impact on welfare and growth is smaller as well (for any brain gain size); (3) a positive brain gain is likely to result in a smaller, possibly negative human capital gain; (4) an increase in the stock of human capital may have a negative impact on welfare and growth; and (5) in a dynamic framework, the paper shows that the steady-state brain gain is equal to the brain drain so that a "beneficial brain drain" cannot take place, and a net brain loss is likely during the transition.
| Author | : Alexander Haupt |
| Publisher | : |
| Total Pages | : 11 |
| Release | : 2010 |
| Genre | : |
| ISBN | : |
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.
| Author | : Maurice Schiff |
| Publisher | : |
| Total Pages | : |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
Based on static partial equilibrium analysis, the "new brain drain" literature argues that, by raising the return to education, a brain drain generates a brain gain that is, under certain conditions, larger than the brain drain itself, and that such a net brain gain results in an increase in welfare and growth due to education's positive externalities. This paper argues that these claims are exaggerated. In the static case, and based on both partial and general equilibrium considerations, the paper shows that (1) the size of the brain gain is smaller than suggested in that literature; (2) the impact on welfare and growth is smaller as well (for any brain gain size); (3) a positive brain gain is likely to result in a smaller, possibly negative, human capital gain; (4) an increase in the stock of human capital may have a negative impact on welfare and growth; and (5) in a dynamic framework, the paper shows that the steady-state brain gain is equal to the brain drain so that a 'beneficial brain drain' cannot take place, and a net brain loss is likely during the transition.
| Author | : Junaimah Binti Jauhar |
| Publisher | : Springer |
| Total Pages | : 180 |
| Release | : 2016-06-15 |
| Genre | : Business & Economics |
| ISBN | : 9811009775 |
This book focuses on skilled labour migration from Malaysia to Singapore. In this regard, it examines a number of variables such as Better Perks and Benefits, Quality of Work Life, Ease of Immigration Procedures, International Exposure, Greater Job Availability, and Social Networks, and how they influence the decisions of Malaysian accounting professionals.In doing so, the book elaborates on how this phenomenon is an indirect result of globalization, which is predominantly detrimental for developing countries such as Malaysia. The book also highlights the need for these experts in their home country, as Malaysia is currently striving to improve its economy in order to achieve high-income status by 2020.
| Author | : J. Kornai |
| Publisher | : Springer |
| Total Pages | : 282 |
| Release | : 2009-02-25 |
| Genre | : Political Science |
| ISBN | : 0230242170 |
With the aim of providing a comprehensive analysis of institutions, and of the global economy more generally, this volume explores systems of institutions and the effect of corruption, developments in behavioural economics, the impact of immigration, and the links between democratic progress and economic growth.
| Author | : Carlos Alfredo Rodríguez |
| Publisher | : |
| Total Pages | : 35 |
| Release | : 1975 |
| Genre | : Brain drain |
| ISBN | : |
| Author | : Jagdish N. Bhagwati |
| Publisher | : MIT Press |
| Total Pages | : 256 |
| Release | : 1989 |
| Genre | : Business & Economics |
| ISBN | : 9780262022927 |
Income Taxation and International Mobility addresses the novel theoretical and practical problems that this growing phenomenon of international personal mobility creates for the design of a country's tax system and takes up questions that have grown largely out of the extensive debate over Jagdish Bhagwati's proposal in the early 1970s to "tax the brain drain."Today millions of people work in countries where they are not citizens. Income Taxation and International Mobility addresses the novel theoretical and practical problems that this growing phenomenon of international personal mobility creates for the design of a country's tax system and takes up questions that have grown largely out of the extensive debate over Jagdish Bhagwati's proposal in the early 1970s to tax the brain drain. The contributors, who include many of the leading theorists of international economics and public finance, look at how the difficult question of how horizontal equity is to be defined - between nationals at home and abroad or between nationals abroad and foreign citizens abroad - and tackle such questions as Should a country exercise income tax jurisdiction over its citizens abroad? If so, in what way? Is it practical to do so? The issues that these questions raise are complex, lying on the interface of politics, sociology, and economics. Income Taxation and International Mobility breaks significant new ground by analyzing these questions and building on the modern theory of optimal income taxation to examine the consequences of the possibility of outmigration on the appropriate exercise and design of income tax jurisdiction on those who live outside their native country. Theoretical analyses are presented in six chapters by the editors and by James Mirrlees, William Baumol, and Koichi Hamada. The well known tax law expert, Richard Pomp, examines the Philippines experience in taxing citizens abroad. The editors provide a substantial introduction that synthesizes the book's major analytical approaches and conclusions, and Richard Musgrave provides an insightful view of the issues in his Foreword.
| Author | : Ms.Enrica Detragiache |
| Publisher | : International Monetary Fund |
| Total Pages | : 28 |
| Release | : 1998-07-01 |
| Genre | : Social Science |
| ISBN | : 1451948425 |
The brain drain from developing countries has been lamented for many years, but knowledge of the empirical magnitude of the phenomenon is scant owing to the lack of systematic data sources. This paper presents estimates of emigration rates from 61 developing countries to OECD countries for three educational categories constructed using 1990 U.S. Census data, Barro and Lee’s data set on educational attainment, and OECD migration data. Although still tentative in many respects, these estimates reveal a substantial brain drain from the Caribbean, Central America, and some African and Asian countries.
| Author | : Mr.Ruben V Atoyan |
| Publisher | : International Monetary Fund |
| Total Pages | : 48 |
| Release | : 2016-07-20 |
| Genre | : Social Science |
| ISBN | : 1475576366 |
This paper analyses the impact of large and persistent emigration from Eastern European countries over the past 25 years on these countries’ growth and income convergence to advanced Europe. While emigration has likely benefited migrants themselves, the receiving countries and the EU as a whole, its impact on sending countries’ economies has been largely negative. The analysis suggests that labor outflows, particularly of skilled workers, lowered productivity growth, pushed up wages, and slowed growth and income convergence. At the same time, while remittance inflows supported financial deepening, consumption and investment in some countries, they also reduced incentives to work and led to exchange rate appreciations, eroding competiveness. The departure of the young also added to the fiscal pressures of already aging populations in Eastern Europe. The paper concludes with policy recommendations for sending countries to mitigate the negative impact of emigration on their economies, and the EU-wide initiatives that could support these efforts.
