Abstract:
This paper proposes an alternative way of looking at the issue of brain drain. It tries to bring into focus the crucial role of repatriated earnings of emigrants that can potentially help higher absorption of skill and sustain a higher level of skill differentiation in the domestic economy. A situation might also arise where insufficient demand for the skill-using sector gives way to an outcome in which the economy produces and exports a higher level of skilled workforce but is unable to absorb the same domestically, and this might be potentially welfare immiserizing.