Brain Drain or Brain Gain? International labor mobility and human capital formation

Anelí Bongersy (), Carmen Diaz-Roldan and Jose Torres ()
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Anelí Bongersy: Universidad de Málaga
Authors registered in the RePEc Author Service: Anelí Bongers

No 18-04, Working Papers from Asociación Española de Economía y Finanzas Internacionales

Abstract: This paper studies the impact of international labor migration on human capital invest- ment in both destination and origin countries using an integrated theoretical framework. We develop a two-country Dynamic Stochastic General Equilibrium human capital investment model with international labor mobility, in which both decision to migrate and to invest in skill acquisition are endogenous. We show that human capital formation process in the coun- tries of origin is very sensible to migration policies implemented by destination countries. Our results show that human capital accumulation in the country of origin is encouraged by the possibility of emigration to higher labor productivity countries, supporting the recent view of the "brain gain" hypothesis. Productivity shocks hitting the destination country reduces human capital investment by natives but increase human capital investment in the country of origin when migration is allowed. Finally, we find that migration increases world human capital, increasing the stock of human capital in both destination and origin countries.

Keywords: Migration; Brain Drain; Brain Gain; Human capital formation; Migration policy (search for similar items in EconPapers)
JEL-codes: F22 J24 J61 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-04
New Economics Papers: this item is included in nep-int, nep-knm and nep-mig
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Related works:
Journal Article: Brain drain or brain gain? International labor mobility and human capital formation (2022)
Working Paper: Brain Drain or Brain Gain? International labor mobility and human capital formation (2018)
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