Is Migration a Good Substitute for Education Subsidies?

Assuming a given educational policy, the recent brain drain literature reveals that skilled migration can boost the average level of schooling in developing countries. This paper introduces educational subsidies determined by governments concerned...

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Bibliographic Details
Main Authors:	Docquier, Frédéric, Faye, Ousmane, Pestieau, Pierre
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADMINISTRATIVE COSTS AGE STRUCTURE BENCHMARK BRAIN DRAIN BRAIN GAIN CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL INVESTMENTS CAPITAL STOCK CIVIL WAR CONSEQUENCES OF MIGRATION CONSTANT RETURNS TO SCALE CORRUPTION CREDIT MARKET DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL ATTAINMENT ELASTICITY EMIGRATION EMIGRATION RATE EMPIRICAL ANALYSIS EXPECTED RETURNS EXPENDITURE EXPENDITURES EXTERNALITIES FERTILITY FUNCTIONAL FORMS GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE INDICATORS GOVERNMENT BUDGET GROWTH RATE HOST COUNTRY HUMAN CAPITAL IMMIGRANTS IMMIGRATION IMMIGRATION POLICY IMPACT OF MIGRATION INDIVIDUAL DECISIONS INTEREST RATE INTERNATIONAL BANK INTERNATIONAL MIGRATION INVESTMENT IN EDUCATION LABOR SUPPLY LEVEL OF EDUCATION LIQUIDITY LOW-INCOME COUNTRIES MEXICAN IMMIGRANTS MIDDLE-INCOME MIDDLE-INCOME COUNTRIES MIGRATION MIGRATION COSTS NUMBER OF ADULTS NUMBER OF EMIGRANTS OPEN ECONOMY PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL TURMOIL POPULATION DENSITY POPULATION GROWTH POPULATION GROWTH RATES POPULATION SIZE POPULATION STRUCTURE PRODUCTION FUNCTION PROGRESS PUBLIC EDUCATION PUBLIC GOOD PUBLIC SUBSIDIES PUBLIC SUBSIDY REMITTANCES RESPECT RETURN MIGRATION RISK NEUTRAL RULE OF LAW SECONDARY SCHOOLING SKILL LEVEL SKILLED MIGRANTS SKILLED MIGRATION SKILLED WORKERS SOCIAL CAPITAL SOCIAL COSTS SOCIAL OPTIMUM SOCIAL RETURNS SOCIAL WELFARE SUB-SAHARAN AFRICA TAX TECHNOLOGICAL CHANGE TERTIARY EDUCATION TERTIARY LEVELS TOTALITARIAN REGIMES TURNOVER UNITED NATIONS POPULATION DIVISION UNSKILLED MIGRATION URBANIZATION WORLD DEVELOPMENT INDICATORS
Online Access:	http://documents.worldbank.org/curated/en/2008/05/9416573/migration-good-substitute-education-subsidies http://hdl.handle.net/10986/6716

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Summary:	Assuming a given educational policy, the recent brain drain literature reveals that skilled migration can boost the average level of schooling in developing countries. This paper introduces educational subsidies determined by governments concerned by the number of skilled workers remaining in the country. The theoretical analysis shows that developing countries can benefit from skilled emigration when educational subsidies entail high .fiscal distortions. However when taxes are not too distortionary, it is desirable to impede emigration and subsidize education. The authors investigate the empirical relationship between educational subsidies and migration prospects, obtaining a negative relationship for 105 countries. Based on this result, the analysis revisits the country specific effects of skilled migration upon human capital. The findings show that the endogeneity of public subsidies reduces the number of winners and increases the magnitude of the losses.

Is Migration a Good Substitute for Education Subsidies?

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