A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy

17 Pages Posted: 17 Aug 2010

See all articles by Alexander Haupt

Alexander Haupt

University of Plymouth - Plymouth Business School; CESifo (Center for Economic Studies and Ifo Institute)

Tim Krieger

University of Freiburg - Department of Economics

Thomas Lange

University of Konstanz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: August 17, 2010

Abstract

In this note, we present a novel channel for a brain gain. Students from a developing country study in a developed host country. A higher permanent migration probability of these students appears to be a brain drain for the developing country in the first place. However, it induces the host country to improve its education quality, as a larger share of the generated benefits accrue in this host country. A higher education quality raises in turn the human capital of the returning students. As long as the permanent migration probability is not too large, this positive effect causes both aggregate and per-capita human capital to increase in the developing country. Thus, a brain gain occurs.

Keywords: brain gain, education policy, human capital, return migration

JEL Classification: F22, I28, J61, O15

Suggested Citation

Haupt, Alexander and Krieger, Tim and Lange, Thomas, A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy (August 17, 2010). CESifo Working Paper Series No. 3154. Available at SSRN: https://ssrn.com/abstract=1660367

Alexander Haupt (Contact Author)

University of Plymouth - Plymouth Business School ( email )

Mast House
Plymouth, Devon PL4 8AA
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Tim Krieger

University of Freiburg - Department of Economics ( email )

University of Freiburg
Wilhelmstr. 1b
Freiburg, D-79085
Germany

HOME PAGE: http://www.wguth.uni-freiburg.de

Thomas Lange

University of Konstanz - Department of Economics ( email )

Box D133
D-78457 Konstanz
Germany

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
81679 Munich
Germany

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