Economics at your fingertips  

Brain drain and income distribution

Aida Galiano () and Jose Romero ()
Additional contact information
Aida Galiano: Universidad Internacional de La Rioja (UNIR)

Journal of Economics, 2018, vol. 124, issue 3, 243-267

Abstract: Abstract In a context in which increased income inequality has raised much concern, and skilled workers move easily across countries, an important question arises: how does the brain drain affect income distribution in the source economy? We address this question and introduce two contributions to the literature on brain drain. First, we present and solve a simple stylized model to study whether and, if so, how the brain drain affects the distribution of income, in a context in which higher education is publicly financed with general taxes. Second, we explore empirically the effect of an increase in skilled emigration on income distribution. A key prediction of our theoretical model is the existence of a non-monotonic relationship between income inequality and emigration of skilled workers. Our empirical data confirm this result, showing a statistically significant inverse U-shaped form.

Keywords: Tertiary education; Brain drain; Income distribution (search for similar items in EconPapers)
JEL-codes: F2 I2 O1 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Economics is currently edited by Giacomo Corneo

More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-10-11
Handle: RePEc:kap:jeczfn:v:124:y:2018:i:3:d:10.1007_s00712-017-0576-y