Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295355 
Year of Publication: 
2010
Series/Report no.: 
CReAM Discussion Paper Series No. 09/10
Publisher: 
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London, London
Abstract: 
We explore the complementarities between high-skill emigration and poverty in developing countries. We build a model endogenizing human-capital accumulation, high-skill migration and productivity. Two countries sharing the same characteristics may end up either in a "low poverty/low brain drain" path or in a "high poverty/high brain drain" path. After identifying country-specific parameters, we find that, for a majority of countries, the observed equilibrium has higher income than the other possible one. In 22 developing countries (including 20 small states with less than 2 million inhabitants), poverty and high brain drain are worsened by a coordination failure. For 25 other countries, a radical worsening of economic performances is feasible. These results are fairly robust to identification assumptions and the inclusion of a brain-gain mechanism.
Subjects: 
Public Good
Inequality Aversion
Immigration policy
JEL: 
F22
F55
D58
D6
D7
Document Type: 
Working Paper

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