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See detailA Panel Data Analysis of the Brain Gain
Beine, Michel UL; Defoort, Cécily; Docquier, Frederic

in World Development Forum (2011), 39(4)

In this paper, we revisit the impact of skilled emigration on human cap- ital accumulation using new panel data covering 147 countries on the period 1975-2000. We derive testable predictions from a ... [more ▼]

In this paper, we revisit the impact of skilled emigration on human cap- ital accumulation using new panel data covering 147 countries on the period 1975-2000. We derive testable predictions from a stylized theoretical model and test them in dynamic regression models. Our empirical analysis predicts con- ditional convergence of human capital indicators. Our ndings also reveal that skilled migration prospects foster human capital accumulation in low-income countries. In these countries, a net brain gain can be obtained if the skilled emigration rate is not too large (i.e. does not exceed 20 to 30 percent depend- ing on other country characteristics). On the contrary, we find no evidence of a signi ficant incentive mechanism in middle-income and, unsuprisingly, in high-income countries. [less ▲]

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