International migration and the transfer system: A method to limit brain drain and excessive use of the welfare state

Frank Daumann () and Julian Klöcker ()
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Frank Daumann: Friedrich Schiller University Jena
Julian Klöcker: Friedrich-Schiller University Jena

Economics Bulletin, 2024, vol. 44, issue 4, 1464 - 1468

Abstract: International migration can lead to a lack of human capital in the country of origin (brain drain) and, on the other hand, to excessive demands being placed on the welfare state in the destination country. The transfer system that was used for professional footballers moving from one club to another until the Bosman judgement can also be an efficient solution for migration. According-ly, depending on the amount of contributions an individual makes to the budget of the state of origin and the budget of the state of destination, the state of origin or the state of destination must pay a compensation to the other state. In this way, there is an appropriate compensation for the brain drain in the country of origin and for the burden of the welfare state in the destina-tion country. Our article adds an innovative and efficient proposal to the existing approaches to migration.

Keywords: Migration; Coase theorem; transfer system; brain drain; welfare migration (search for similar items in EconPapers)
JEL-codes: F2 H5 (search for similar items in EconPapers)
Date: 2024-12-30
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