Hillel Rapoport

Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers*

The brain drain has long been viewed as a serious constraint on poor countries development. However, recent theoretical literature suggests that emigration prospects can raise the expected return to human capital and foster investment in education at home. This paper takes advantage of a new dataset on emigration rates by education level (Docquier and Marfouk, 2006) to examine the impact of brain drain migration on human capital formation in developing countries. We find evidence of a positive effect of skilled migration prospects on gross human capital levels in a cross-section of 127 developing countries. For each country we then estimate the net effect of the brain drain using counterfactual simulations. We find that countries combining relatively low levels of human capital and low skilled emigration rates are likely to experience a net gain, and conversely. There appears to be more losers than winners, and in addition the former tend to lose relatively more than what the latter gain. At an aggregate level however, and given that the largest developing countries are all among the winners, brain drain migration may be seen not only as increasing the number of skilled workers worldwide but also the number of such workers living in developing countries.

Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks

The authors examine the role of migration networks in determining self-selection patterns of Mexico-U.S. migration. They first present a simple theoretical framework showing how such networks impact on migration incentives at different education levels and, consequently, how they are likely to affect the expected skill composition of migration. Using survey data from Mexico, the authors then show that the probability of migration is increasing with education in communities with low migrant networks, but decreasing with education in communities with high migrant networks. This is consistent with positive self-selection of migrants being driven by high migration costs, and with negative self-selection of migrants being driven by lower returns to education in the U.S. than in Mexico.

Skilled Migration: The Perspective of Developing Countries

The authors focus on the consequences of skilled migration for developing countries. They first present new evidence on the magnitude of migration of skilled workers at the international level and then discuss its direct and indirect effects on human capital formation in developing countries in a unified stylized model. Finally they turn to policy implications, with emphasis on migration and education policy in a context of globalized labor markets.

Brain drain and brain gain : the global competition to attract high-skilled migrants

The worldwide race to attract talents is getting tougher. The US has been leading the race, with its ability to attract PhD candidates and graduates not only from emerging countries, but also from the European Union. However, a growing number of countries have adopted immigration policies specifically aimed at selecting and attracting skilled workers. This book describes the global competition to attract talents. It focuses in particular on two phenomena: the brain gain and brain drain associated with high-skilled migration. Part I provides an overview of immigration policies designed to draw in skilled workers. It describes the economic gains associated with skilled immigration in the destination countries and the main determinants of the inflows of skilled immigrants (such as wage premia on education and R&D spending). It also discusses why skill-selective immigration policies do not find more support in receiving countries and shows that interest groups are actively engaged in affecting policies towards skilled migrants. Part II examines the consequences of brain drain for the sending countries. It reviews the channels through which skilled emigration can affect the source countries and looks at remittances, return migration, diaspora externalities, and network effects that may compensate the sending countries for their loss of human capital. Contrary to traditional wisdom, the results indicate that most developing countries experience a net gain from skilled emigration.

Comparing Immigration Policies: An Overview from the IMPALA Database

This paper introduces a method and preliminary findings from a database that systematically measures the character and stringency of immigration policies. Based on the selection of that data for nine countries between 1999 and 2008, we challenge the idea that any one country is systematically the most or least restrictive toward admissions. The data also reveal trends toward more complex and, often, more restrictive regulation since the 1990s, as well as differential treatment of groups, such as lower requirements for highly skilled than low-skilled labor migrants. These patterns illustrate the IMPALA data and methods but are also of intrinsic importance to understanding immigration regulation.

On the robustness of brain gain estimates

Recent theoretical studies suggest that migration prospects can raise the expected return to human capital and thus foster education investment at home or, in other words, induce a brain gain. In a recent paper (Beine, Docquier and Rapoport, Economic Journal, 2008) we used the Docquier and Marfouk (2006) data set on emigration rates by education level to examine the impact of brain drain migration on gross (pre-migration) human capital formation in developing countries. We found a positive effect of skilled migration prospects on human capital growth in a cross-section of 127 developing countries, with an elasticity of about 5 percent. In this paper we assess the robustness of our results to the use of alternative brain drain measures, definitions of human capital, and functional forms. We find that the results hold using the Beine et al. (2007) alternative brain drain measures controlling for whether migrants acquired their skills in the home or in the host country. We also regress other indicators of human capital investment on skilled migration rates and find a positive effect on youth literacy while the effect on school enrolment depends on the exact specification chosen.

Migration and Development Research is Moving Far Beyond Remittances

Research on migration and development has recently changed, in two ways. First, it has grown sharply in volume, emerging as a proper subfield. Second, while it once embraced principally rural-urban migration and international remittances, migration and development research has broadened to consider a range of international development processes. These include human capital investment, global diaspora networks, circular or temporary migration, and the transfer of technology and cultural norms. To introduce a special issue of World Development on migration and development, we present a selection of frontier migrant-and-development research that instantiates these trends.

The Optimal Size for a Minority

We investigate a setting in which members of a population, bifurcated into a majority and a minority, transact with randomly matched partners. All members are uniformly altruistic, and each transaction can be carried out cooperatively or through a market mechanism, with cooperative transactions saving on transaction costs. Externalities are introduced, whereby cooperation by members of one group and the

Measuring and Comparing Immigration, Asylum and Naturalization Policies Across Countries: Challenges and Solutions

Academics and policy makers require a better understanding of the variation of policies that regulate global migration, asylum and immigrant naturalization. At present, however, there is no comprehensive cross-national, time-series database of such policies, rendering the analysis of policy trends across and within these areas difficult at best. Several new immigration databases and indices have been developed in recent years. However, there is no consensus on how best to conceptualize, measure and aggregate migration policy indicators to allow for meaningful comparisons through time and across space. This article discusses these methodological challenges and introduces practical solutions that involve historical, multi-dimensional, disaggregated and transparent conceptualizing, measuring and compiling of cross-national immigration policies. Such an approach informs the International Migration Policy and Law Analysis (IMPALA) database.

Migration, Knowledge Diffusion and the Comparative Advantage of Nations

In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.