A Simple Model of Brain Circulation

Nicolas Schmitt and Antoine Soubeyran

No 1484, CESifo Working Paper Series from CESifo

Abstract: This paper considers the allocation of two types of individuals differentiated by levels of talent within and between two countries when they choose to be workers or entrepreneurs. The equilibrium with international migrations requires both countries to be sufficiently different in talent endowments and is consistent with individuals moving in one or in both directions whether they are entrepreneurs or workers. Average welfare per capita falls in the country losing highly talented individuals and rises in the country attracting them. However, in both countries, the liberalization of migrations for immigrants, emigrants or both is always supported by majority voting.

Date: 2005
New Economics Papers: this item is included in nep-ent
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Journal Article: A simple model of brain circulation (2006)
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