Extending the Case for a Beneficial Brain Drain
-
Simone Bertoli
and
Herbert Brücker
Summary
Several destination countries still adopt general immigration policies, and are characterized by lower returns to education than the countries of origin of the migrants. These two stylized facts challenge the literature on the beneficial brain drain which demonstrates that migration can increase the average human capital in the sending countries if immigration policies are selective, or the skill premium at destination is higher than at origin. We propose a model with empirically sensible assumptions on immigration policies and skill premia, where individuals face heterogeneous and correlated education and migration costs. The model is consistent with a robust stylized fact, namely that the rate of migration increases with schooling, and it shows that the average level of education of the stayers can be increasing in the probability to migrate even in such a setting. Our simulation results prove that these findings hold for reasonable parameter values. This extends the case for a beneficial brain drain in a further direction.
© 2011 by Lucius & Lucius, Stuttgart
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- Abhandlungen / Original Papers
- Extending the Case for a Beneficial Brain Drain
- Searching for the Concentration-Price Effect in the German Movie Theater Industry
- Value Function Iteration as a Solution Method for the Ramsey Model
- Purchasing-power-dependent Preferences as a New Explanation of Giffen Behaviour: A Note
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- Diskussionsbeitrag / Discussion Paper. Finanzverwaltung von innen: Neue Ansätze ihrer empirisch-ökonomischen Erforschung
- Buchbesprechungen / Book Reviews
Articles in the same Issue
- Inhalt / Contents
- Abhandlungen / Original Papers
- Extending the Case for a Beneficial Brain Drain
- Searching for the Concentration-Price Effect in the German Movie Theater Industry
- Value Function Iteration as a Solution Method for the Ramsey Model
- Purchasing-power-dependent Preferences as a New Explanation of Giffen Behaviour: A Note
- Changes in Import Pricing Behaviour: Evidence for Germany
- Robust Estimation of Linear Fixed Effects Panel Data Models with an Application to the Exporter Productivity Premium
- Diskussionsbeitrag / Discussion Paper. Finanzverwaltung von innen: Neue Ansätze ihrer empirisch-ökonomischen Erforschung
- Buchbesprechungen / Book Reviews
