Effective cost of brain drain

Jamal Bouoiyour (), Mohamed Jellal and Francois Charles Wolff ()
Additional contact information
Mohamed Jellal: GRID - Groupe de Recherche sur le risque, l'Information et la Décision - ENS Cachan - École normale supérieure - Cachan - CNRS - Centre National de la Recherche Scientifique
Francois Charles Wolff: LEN - Laboratoire d'économie de Nantes - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes

Post-Print from HAL

Abstract: In developing countries, remittances and intra-family private transfers sent by household members who migrate to more developed countries constitute a fundamental source of income and capital accumulation. Then, it is important to understand the motives of migrants who decide to remit back to their families. Drawing on the theory of labor migration under asymmetric information, we show that low-skilled workers are expected to provide higher amounts of remittances when remittances are motivated by self-interest. This transfer paradox is explained as follows. Since low skilled workers are likely to return home when informational symmetry is restored, the optimal remittance level is a decreasing function of the migrant's skill level since remittances may be seen as an implicit insurance, whose benefits are received only under migration return.

Keywords: migration; Remittances; asymmetric information (search for similar items in EconPapers)
Date: 2003
Note: View the original document on HAL open archive server: https://hal.science/hal-03913181v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Brazilian Journal of Business Economics, 2003

Downloads: (external link)
https://hal.science/hal-03913181v1/document (application/pdf)

Related works:
Working Paper: Effective Cost of Brain Drain (2003)
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: https://EconPapers.repec.org/RePEc:hal:journl:hal-03913181

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().