Arbeitspapier

Consumers and the brain drain: product design and the gains from emigration

We consider the welfare effects of skilled worker emigration in a context where skilled labor plays a role in product design. We show such emigration can benefit the residents left behind, even when consumers' tastes exhibit a form of home bias. This is because emigration improves the design of goods designed by skilled emigrants but consumed in the sending country. In contrast to existing models of beneficial brain drain, our results do not require agglomeration economies, education-related externalities, remittances, return migration, or an emigration lottery. Instead, they are driven purely by differences in market size that induce skilled emigrants to design better products abroad than at home.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3602

Klassifikation
Wirtschaft
International Migration
Thema
Brain drain
international labor migration
product quality
Brain Drain
Produktdesign
Produktqualität
Import
Konsumtheorie
Wohlfahrtseffekt
Theorie

Ereignis
Geistige Schöpfung
(wer)
Kuhn, Peter
McAusland, Carol
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
URN
urn:nbn:de:101:1-20080723139
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kuhn, Peter
  • McAusland, Carol
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

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