Brain Drain and Brain Gain: The Global Competition to Attract High-Skilled Migrants
The worldwide race to attract talents is getting tougher. The US has been leading the race, with its ability to attract PhD candidates and graduates not only from emerging countries, but also from the European Union. However, a growing number of countries have adopted immigration policies specifically aimed at selecting and attracting skilled workers. This book describes the global competition to attract talents. It focuses in particular on two phenomena: the brain gain and brain drain associated with high-skilled migration. Part I provides an overview of immigration policies designed to draw in skilled workers. It describes the economic gains associated with skilled immigration in the destination countries and the main determinants of the inflows of skilled immigrants (such as wage premia on education and R&D spending). It also discusses why skill-selective immigration policies do not find more support in receiving countries and shows that interest groups are actively engaged in affecting policies towards skilled migrants. Part II examines the consequences of brain drain for the sending countries. It reviews the channels through which skilled emigration can affect the source countries and looks at remittances, return migration, diaspora externalities, and network effects that may compensate the sending countries for their loss of human capital. Contrary to traditional wisdom, the results indicate that most developing countries experience a net gain from skilled emigration.
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analysis Australia average Battle for Brains benefits bilateral brain drain Canada capital accumulation cent channel coefficient country of origin data set dependent variable destination countries developing countries diaspora Docquier dummies economic effects of immigration empirical employment equation estimates Facchini Figure fixed effects GDP per capita global H1B visas high-skilled higher highly educated immigrants highly skilled immigrants highly skilled individuals highly skilled migration highly skilled workers host country human capital immi immigrant population immigration laws immigration policies impact income increase individual attitudes inflow International Migration investment labour market low-skilled Mayda median voter migration flows migration policies natives OECD countries ordered probit origin countries positive programmes Rapoport receiving countries regression remittances selective immigration policies share of highly significant skill composition skill-selective immigration policies skilled emigration rate source countries specific Table talented tertiary education tion total factor productivity total immigration unskilled wage welfare