A panel data analysis of the Brain drain

in World Development : The Multi-Disciplinary International Journal Devoted to the Study and Promotion of World Development (2011), 39(4),

In this paper, we revisit the impact of skilled emigration on human capital accumulation using new panel data covering 147 12 countries during the period 1975–2000. We derive testable predictions from a ... [more ▼]

In this paper, we revisit the impact of skilled emigration on human capital accumulation using new panel data covering 147 12 countries during the period 1975–2000. We derive testable predictions from a stylized theoretical model and test them in dynamic regres- 13 sion models. Our empirical analysis predicts conditional convergence of human capital indicators. Our findings also reveal that skilled 14 migration prospects foster human capital accumulation in low-income countries. In these countries, a net brain gain can be obtained if 15 the skilled emigration rate is not too large (i.e., it does not exceed 20–30% depending on other country characteristics). In contrast, we 16 find no evidence of a significant incentive mechanism in middle-income, and not surprisingly, high-income countries. [less ▲]