Emigration, wage differentials and brain drain: the case of Suriname

Tina Dulam and Philip Hans Franses

Applied Economics, 2015, vol. 47, issue 23, 2339-2347

Abstract: In this article, we examine two hypotheses concerning emigration. The first hypothesis is that emigration is positively correlated with wage differentials. The second hypothesis concerns a positive correlation between emigration and higher education in the sending country (the so-called brain gain hypothesis). We analyse unique time-series data for Suriname for the period 1972-2009, for which we fit error correction models to disentangle short-run from long-run effects. We document moderate support for the first hypothesis, but we find strong support for the brain drain (and not brain gain) hypothesis. We conclude with implications of our findings for Suriname.

Date: 2015
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Working Paper: Emigration, wage differentials and brain drain: The case of Suriname (2011)
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DOI: 10.1080/00036846.2015.1005826

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