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:
GDP
HIV
SEX
TAX
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
id okr-10986-3878
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic 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
spellingShingle 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
Gibson, John
McKenzie, David
The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries
geographic_facet South Asia
South Asia
The World Region
The World Region
East Asia and Pacific
East Asia and Pacific
East Asia
South Asia
Asia
India
China
relation Policy Research working paper ; no. WPS 5394
description 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.
format Publications & Research :: Policy Research Working Paper
author Gibson, John
McKenzie, David
author_facet Gibson, John
McKenzie, David
author_sort Gibson, John
title The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries
title_short The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries
title_full The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries
title_fullStr The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries
title_full_unstemmed The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries
title_sort economic consequences of “brain drain” of the best and brightest : microeconomic evidence from five countries
publishDate 2012
url 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
_version_ 1764388801775403008
spelling okr-10986-38782021-04-23T14:02:13Z The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries Gibson, John McKenzie, David 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 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. 2012-03-19T18:41:24Z 2012-03-19T18:41:24Z 2010-08-01 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 English Policy Research working paper ; no. WPS 5394 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia The World Region The World Region East Asia and Pacific East Asia and Pacific East Asia South Asia Asia India China