The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries

Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs,...

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Bibliographic Details
Main Authors:	Gibson, John, McKenzie, David
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACADEMIC OUTCOMES ACADEMIC PERFORMANCE ADVANCED DEGREES BANK POLICY BASKET OF GOODS BENEFITS OF EDUCATION BOND BRAIN DRAIN CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INVESTMENTS CAPITAL MARKET CITIZENS CIVIC PARTICIPATION CONSEQUENCES OF MIGRATION CONSUMERS COUNTRIES OF ORIGIN DEMAND CURVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DIASPORA DISCOUNT RATE DOMESTIC MARKETS DUE DILIGENCE DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE ECONOMIC THEORY ECONOMICS OF EDUCATION EDUCATED MIGRANTS EDUCATION SYSTEMS EDUCATIONAL ATTAINMENT EDUCATIONAL SYSTEMS EXCHANGE RATE EXCHANGE RATES EXPORT MARKET EXPORTERS EXTERNALITY FAMILY MEMBERS FEMALE MIGRANTS FERTILITY FINANCIAL FLOWS FINANCIAL SUPPORT FOREIGN DIRECT INVESTMENT FUTURE RESEARCH GDP GLOBAL DEVELOPMENT GOVERNMENT EXPENDITURE GOVERNMENT REVENUE GOVERNMENT SPENDING GRADUATE STUDENTS GROSS VALUE HARD SCIENCES HIGH SCHOOLS HIGHER EDUCATION HIGHER INCOMES HIGHLY SKILLED INDIVIDUALS HIV HOLDING HOME COUNTRIES HOME COUNTRY HOUSEHOLD INCOMES HOUSEHOLD SIZE HUMAN CAPITAL HUMAN CAPITAL FORMATION HUMAN RESOURCES IDENTITY THEFT ILLNESS IMMIGRANTS IMMIGRATION IMPACT OF EDUCATION IMPACT OF MIGRATION INCOME INCOME TAX INCOME TAXES INFORMATION TECHNOLOGY INSTRUMENT INTERNAL RATES OF RETURN INTERNATIONAL BANK INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INTERNATIONAL TRADE INVESTING KNOWLEDGE SHARING LABOR MARKETS LEARNING LEVELS OF EDUCATION LEVELS OF PRODUCTIVITY LITERATURE LIVING ADJUSTMENT LIVING CONDITIONS LIVING STANDARDS LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENTS MACROECONOMIC SHOCKS MACROECONOMICS MARGINAL PRODUCT MEDICAL PROFESSIONALS MEDICAL SCHOOLS MICRO-DATA MICRODATA MIGRANT MIGRANT-SENDING COUNTRIES MIGRATION POLICY MINISTRY OF EDUCATION MOTHER NATIONAL EXAMINATIONS NATIONAL GOVERNMENT NATURAL SCIENCES NEGATIVE EXTERNALITIES OPPORTUNITY COSTS OUTPUT PANDEMIC PAPERS PARTICULAR COUNTRY PER CAPITA INCOME PER CAPITA INCOMES POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL STABILITY POPULATION SIZE POSITIVE EFFECTS POSTGRADUATE EDUCATION POWER PARITIES PRIVATE SECTOR DEVELOPMENT PROFIT MARGIN PROGRESS PUBLIC HEALTH PUBLIC SERVICES PURCHASING POWER RADIO RATE OF RETURN RECREATION REGRESSION ANALYSIS REMITTANCES RESEARCH COLLABORATION RESEARCH COMMUNITY RESEARCH FUNDING RESEARCHERS RETURN MIGRATION RETURNEES RETURNS SAVINGS SCHOLARS SCHOLARSHIPS SCIENTIFIC COMMUNITIES SCIENTIST SCIENTISTS SECONDARY ENROLMENT SECONDARY SCHOOL SECONDARY SCHOOL ENROLMENT SECONDARY SCHOOLING SECONDARY SCHOOLS SEX SKILLED MIGRANTS SKILLED OCCUPATIONS SKILLED WORKERS SMALL COUNTRIES SOCIAL PRESSURE SOCIAL SCIENCES SPILLOVER TAX TAX RATE TAX RATES TAX REVENUES TAX SYSTEM TAXATION TEACHERS TECHNOLOGY DIFFUSION TELEVISION TEMPORARY MIGRATION TERTIARY EDUCATION TERTIARY INSTITUTIONS TRANSACTION TRANSFER OF SKILLS TREASURY TRUST FUND UNDERDEVELOPED COUNTRIES UNEMPLOYMENT VARIABLE COSTS VENTURE CAPITAL WAGES WEALTH
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100803134804 http://hdl.handle.net/10986/3878

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Summary:	Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on many of these is very limited. Moreover, the lessons from case studies of benefits to China and India from skilled emigration may not be relevant to much smaller countries. This paper presents the results of innovative surveys which tracked academic high-achievers from five countries to wherever they moved in the world in order to directly measure at the micro level the channels through which high-skilled emigration affects the sending country. The results show that there are very high levels of emigration and of return migration among the very highly skilled; the income gains to the best and brightest from migrating are very large, and an order of magnitude or more greater than any other effect; there are large benefits from migration in terms of postgraduate education; most high-skilled migrants from poorer countries send remittances; but that involvement in trade and foreign direct investment is a rare occurrence. There is considerable knowledge flow from both current and return migrants about job and study opportunities abroad, but little net knowledge sharing from current migrants to home country governments or businesses. Finally, the fiscal costs vary considerably across countries, and depend on the extent to which governments rely on progressive income taxation.

The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries

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