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Armando Garcia Pires ()

Journal of Economic Development, 2015, vol. 40, issue 1, 1-34

Abstract: When skilled workers migrate, they face the brain waste risk, i.e., they can end up employed as unskilled. We analyze the effects of brain waste on brain drain, resulting from low international transferability of skills. We show that this type of brain waste: (1) reduces education incentives; (2) weakens the chances for a positive self-selection; and (3) decreases the possibility of a brain gain. In addition, the effectiveness of education policies that subsidize students is reduced under the presence of brain waste. Results are robust to introducing different migration costs for the skilled and the unskilled.

Keywords: Brain Drain; Brain Waste; Self-Selection; International Transferability of Human Capital (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2015
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Handle: RePEc:jed:journl:v:40:y:2015:i:1:p:1-34