Brain Drain and its Determinants: A Major Issue for Small States

25 Pages Posted: 3 Nov 2008

See all articles by Michel A. R. Beine

Michel A. R. Beine

University of Luxemburg; CESifo (Center for Economic Studies and Ifo Institute)

Frédéric Docquier

Université catholique de Louvain; CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Maurice Schiff

Fellow, Institute for the Study of Labor (IZA)

Abstract

This paper examines the relationship between the brain drain and country size, as well as the extent of small states' overall loss of human capital. We find that small states are the main losers because they i) lose a larger proportion of their skilled labor force and ii) exhibit stronger reactions to standard push factors. We also observe that the correlation between human capital indicators and country size is close to zero. This suggests that small states are more successful in producing skilled natives and less successful in retaining them.

Keywords: brain drain, small states, human capital, openness

JEL Classification: F22, J24, J61, O15

Suggested Citation

Beine, Michel A. R. and Docquier, Frédéric and Schiff, Maurice W., Brain Drain and its Determinants: A Major Issue for Small States. IZA Discussion Paper No. 3398. Available at SSRN: https://ssrn.com/abstract=1294540 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Michel A. R. Beine (Contact Author)

University of Luxemburg ( email )

L-1511 Luxembourg
Luxembourg

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Frédéric Docquier

Université catholique de Louvain ( email )

IRES
Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://perso.uclouvain.be/frederic.docquier/

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Maurice W. Schiff

Fellow, Institute for the Study of Labor (IZA) ( email )

Bonn
Germany

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