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Return Migration, Human Capital Accumulation and the Brain Drain ∗

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In this article, the authors present a model that explains migrations as decisions that respond to where human capital can be acquired more efficiently, and where the return to human capital is highest.
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This article is published in Journal of Development Economics.The article was published on 2011-05-01 and is currently open access. It has received 306 citations till now. The article focuses on the topics: Human capital.

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Globalization, Brain Drain, and Development

TL;DR: The authors reviewed four decades of economics research on the brain drain with a focus on recent contributions and on development issues, showing that high-skill migration is becoming a dominant pattern of international migration and a major aspect of globalization and used a stylized growth model to analyze the various channels through which a brain drain affects the sending countries and review the evidence on these channels.
Book

Leveraging Migration for Africa: Remittances, Skills, and Investments

TL;DR: In this article, the authors provide new analyses and case studies, as well as formulating policy recommendations that can improve the migration experience for migrants, origin countries, and destination countries.
Journal ArticleDOI

The Economics of Temporary Migrations

TL;DR: In this article, the authors provide a thorough examination of the various aspects of temporary migrations that matter for the analysis of economic phenomena and demonstrate how temporariness can affect the various economic choices.
Book ChapterDOI

Migration and Education

TL;DR: In this paper, the authors discuss some of the key areas that connect migration and education and discuss the impact of migration on the educational outcomes of non-migrators in the destination country.
Posted Content

A Global View of Cross-Border Migration

TL;DR: The authors evaluate the global welfare impact of observed levels of migration using a quantitative multi-sector model of the world economy calibrated to aggregate and firm-level data and show that the impact of migration on average welfare in these countries is close to zero, while the skilled and unskilled natives tend to experience welfare changes of opposite signs.
References
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The mechanics of economic development

Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Journal ArticleDOI

On the mechanics of economic development

TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.
Journal ArticleDOI

Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case

TL;DR: In this paper, the combined problem of optimal portfolio selection and consumption rules for an individual in a continuous-time model was examined, where his income is generated by returns on assets and these returns or instantaneous "growth rates" are stochastic.
Book ChapterDOI

The Costs and Returns of Human Migration

TL;DR: In this paper, the influence of migration as an equilibrating mechanism in a changing economy has been examined and it is shown that the movements of migrants clearly are in the appropriate direction, but we do not know whether the numbers are sufficient to correct income disparities as they emerge.
Journal ArticleDOI

The Effect of Americanization on the Earnings of Foreign-born Men

TL;DR: This paper analyzed the earnings of foreign-born adult white men, as reported in the 1970 Census of Population, through comparisons with the native born and among the foreign born by country of origin, years in the United States, and citizenship.
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Frequently Asked Questions (10)
Q1. What have the authors contributed in "Return migration, human capital accumulation and the brain drain∗" ?

In this paper the authors present a model that explains migrations as decisions that respond to where human capital can be acquired more efficiently, and where the return to human capital is highest. 

20 through the impacts of emigration ( immigration ) on the workers who stay in the home country and also further consequences for the workers in the receiving country. 

While only 1.6% of those with an intermediate level of education had returned, 4.3% and 5% of the low and highly educated returned. 

The basic intuition is that if the immigrant plans to stay in the host country, then, by leaving early, she can increase the amount of Ka that will be used in the host country. 

The interest rate also plays a role because, to the extent that investment abroad is productive, one would prefer to receive these benefits sooner rather than later. 

When an agent reaches that critical age her human capital remains constant for the rest of her life, which captures the idea that learning capacity declines with age.10 This assumption implies substitution between learning at home and abroad. 

They find that, for these immigrants, the labor market experience accumulated in the US increases earnings by twice the amount than experience accumulated in Mexico. 

The graph16Partial transferability and condition (9) requireγ2b γ1b > θ1a − θ1b θ2b − θ2a > γ2a γ1a ,and, by assumption, γ2b γ1b > 1 > γ2a γ1a .14is drawn for the case in which the prices of skill 2 differ across countries less than the prices of skill 1, that is, θ1a−θ1bθ2b−θ2a > 

This happens, because during the stay in the host country, the human capital applicable in the home country, Kb, rises at a faster rate than the human capital that is applicable to the host country, Ka. Examining Figure 2, it is seen that immigrants with a higher Ω(τ) will leave sooner after arrival (i.e., ε− τ declines) because the foregone earnings at home while learning abroad are higher for them. 

The empirical findings seem compatible with the one skill model only upon introducing additional assumptions, such as a decline in migration costs with education.