Human capital flight

Theoretical physicist Albert Einstein, who emigrated to the United States to escape Nazi persecution, is an example of human capital flight as a result of political change.

Human capital flight is the emigration or immigration of individuals who have received advanced training in their home country. The net benefits of human capital flight for the receiving country are sometimes referred to as a "brain gain" whereas the net costs for the sending country are sometimes referred to as a "brain drain".[1] In occupations with a surplus of graduates, immigration of foreign-trained professionals can aggravate the underemployment of domestic graduates,[2] whereas emigration from an area with a surplus of trained people leads to better opportunities for those remaining. But emigration may cause problems for the home country if the trained people are in short supply there.

Research shows that there are significant economic benefits of human capital flight for the migrants themselves and for the receiving country.[3][4][5][6] The consequences for the country of origin are less straightforward, with research suggesting they can be positive,[7][8][9][10][11][12] negative[13][14][15][16] or mixed.[17][18][19] Research also suggests that emigration,[20] remittances and return migration[21] can have a positive effect on democratization and on the quality of political institutions in the country of origin.[22][23][24][25]

  1. ^ Baptiste, Nathalie (25 February 2014). "Brain Drain and the Politics of Immigration". Foreign Policy In Focus. Institute for Policy Studies. Retrieved 15 June 2018. The migration of highly skilled workers can pay dividends for immigrants and their employers, but it produces losers as well.
  2. ^ Birrell, Bob (8 March 2016). "Australia's Skilled Migration Program: Scarce Skills Not Required" (PDF). The Australian Population Research Institute. Monash University. Retrieved 15 June 2018.
  3. ^ Cite error: The named reference :7 was invoked but never defined (see the help page).
  4. ^ Andreas, Willenbockel, Dirk; Sia, Go, Delfin; Amer, Ahmed, S. (11 April 2016). "Global migration revisited : short-term pains, long-term gains, and the potential of south-south migration".{{cite web}}: CS1 maint: multiple names: authors list (link)
  5. ^ "The Gain from the Drain - Skill-biased Migration and Global Welfare" (PDF).
  6. ^ Hillel, Rapoport (20 September 2016). "Migration and globalization: what's in it for developing countries?". International Journal of Manpower. 37 (7): 1209–1226. doi:10.1108/IJM-08-2015-0116. hdl:10419/145243. ISSN 0143-7720. S2CID 4931047.
  7. ^ Tomohara, A. (2020). "Do migration networks worsen trade deficit? Evidence from the United States and Germany". World Economy. 44 (6): 1720–1739. doi:10.1111/twec.13042. S2CID 224975874.
  8. ^ Cite error: The named reference :10 was invoked but never defined (see the help page).
  9. ^ Shrestha, Slesh A. (1 April 2016). "No Man Left Behind: Effects of Emigration Prospects on Educational and Labour Outcomes of Non-migrants". The Economic Journal. 127 (600): 495–521. doi:10.1111/ecoj.12306. ISSN 1468-0297. S2CID 154362034.
  10. ^ Beine, Michel; Docquier, Fréderic; Rapoport, Hillel (1 April 2008). "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers" (PDF). The Economic Journal. 118 (528): 631–652. doi:10.1111/j.1468-0297.2008.02135.x. hdl:2078.1/5768. ISSN 1468-0297. S2CID 28988486.
  11. ^ Dinkelman, Taryn; Mariotti, Martine (2016). "The Long-Run Effects of Labor Migration on Human Capital Formation in Communities of Origin" (PDF). American Economic Journal: Applied Economics. 8 (4): 1–35. doi:10.1257/app.20150405. S2CID 5140105.
  12. ^ Batista, Catia; Lacuesta, Aitor; Vicente, Pedro C. (1 January 2012). "Testing the 'brain gain' hypothesis: Micro evidence from Cape Verde". Journal of Development Economics. 97 (1): 32–45. doi:10.1016/j.jdeveco.2011.01.005. hdl:10419/44193. S2CID 4489444.
  13. ^ Collier, P. (2004-12-01). "Africa's Exodus: Capital Flight and the Brain Drain as Portfolio Decisions". Journal of African Economies. 13 (suppl_2): ii15–ii54. doi:10.1093/jae/ejh042. ISSN 1464-3723.
  14. ^ Bhargava, Alok; Docquier, Frédéric (2008-01-01). "HIV Pandemic, Medical Brain Drain, and Economic Development in Sub-Saharan Africa". The World Bank Economic Review. 22 (2): 345–366. doi:10.1093/wber/lhn005. hdl:10986/4483. ISSN 1564-698X.
  15. ^ Quamruzzaman, Amm (December 2020). "Exploring the Impact of Medical Brain Drain on Child Health in 188 Countries over 2000–2015". Societies. 10 (4): 73. doi:10.3390/soc10040073.
  16. ^ Chibango, Conrad (2013-06-01). "Zimbabwe's Medical Brain Drain: Impact Assessment on Health Service Delivery and Examination of Policy Responses: A Literature Review". European Journal of Sustainable Development. 2 (2): 43–58. doi:10.14207/ejsd.2013.v2n2p43. ISSN 2239-5938.
  17. ^ Docquier, Frédéric; Rapoport, Hillel (2009-12-01). "Documenting the Brain Drain of "La Crème de la Crème"". Jahrbücher für Nationalökonomie und Statistik (in German). 229 (6): 679–705. doi:10.1515/jbnst-2009-0603. ISSN 2366-049X. S2CID 55779929.
  18. ^ Li, Xiaoyang; McHale, John; Zhou, Xuan (2017). "Does Brain Drain Lead to Institutional Gain?". The World Economy. 40 (7): 1454–1472. doi:10.1111/twec.12407. ISSN 1467-9701. S2CID 21402169.
  19. ^ Chauvet, Lisa; Gubert, Flore; Mesplé-Somps, Sandrine (2013-06-01). "Aid, Remittances, Medical Brain Drain and Child Mortality: Evidence Using Inter and Intra-Country Data". The Journal of Development Studies. 49 (6): 801–818. doi:10.1080/00220388.2012.742508. ISSN 0022-0388. S2CID 154221637.
  20. ^ Ivlevs, Artjoms; King, Roswitha M. (2017). "Does emigration reduce corruption?". Public Choice. 171 (3–4): 389–408. doi:10.1007/s11127-017-0442-z.
  21. ^ Burgess, Katrina (2012). "Migrants, Remittances, and Politics: Loyalty and Voice after Exit" (PDF). The Fletcher Forum of World Affairs. 36 (1): 43–55.
  22. ^ Barsbai, Toman; Rapoport, Hillel; Steinmayr, Andreas; Trebesch, Christoph (2017). "The Effect of Labor Migration on the Diffusion of Democracy: Evidence from a Former Soviet Republic" (PDF). American Economic Journal: Applied Economics. 9 (3): 36. doi:10.1257/app.20150517. hdl:10419/83491. S2CID 4973898.
  23. ^ Lodigiani, Elisabetta (2016). "The effect of emigration on home-country political institutions". IZA World of Labor. doi:10.15185/izawol.307.
  24. ^ Meseguer, C.; Burgess, K. (2014). "International Migration and Home Country Politics". Studies in Comparative International Development. 49 (1): 1–12. doi:10.1007/s12116-014-9149-z. ISSN 1936-6167.
  25. ^ Docquier, Frédéric; Lodigiani, Elisabetta; Rapoport, Hillel; Schiff, Maurice. "Emigration and democracy" (PDF). Bar-Ilan University.