Arbeitspapier

A note on brain gain and brain drain: Permanent migration and education policy

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.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 3154

Classification
Wirtschaft
International Migration
Education: Government Policy
Geographic Labor Mobility; Immigrant Workers
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Subject
brain gain
education policy
human capital
return migration
Brain Drain
Bildungsinvestition
Dienstleistungsqualität
Bildungsniveau
Rückwanderung
Nord-Süd-Beziehungen
Theorie

Event
Geistige Schöpfung
(who)
Haupt, Alexander
Krieger, Tim
Lange, Thomas
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2010

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Haupt, Alexander
  • Krieger, Tim
  • Lange, Thomas
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2010

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