DEA Working Paper No. 28, June 2007

Brain drain and Human Capital Formation in Developing Countries. Are there Really Winners?


José Luis Groizard and Joan Llull

 

Abstract 

We examine the empirical relationship between the migration rate of skilled workers and human capital formation in developing countries. In particular, we revisit Beine, Docquier and Rapoport (2007), who find evidence of an incentive effect. Our results suggest that an incentive effect is weak if not absent, since positive correlation among brain drain and human capital ex-ante is not robust to small changes in the specification.

 

Keywords: brain drain, migration, education, incentives.

JEL codes: F22, J24, O15.

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