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Remittances and the brain drain: do more skilled migrants remit more?

This article considers the argument that skilled migrants raise economic welfare at home by sending a relatively larger flow of remittances, whereas most recent literature focuses on the link between skilled outmigration and educational achievements in the home country, and immigration policies in most destination countries are tilted more and more in favour of skilled individuals which is argued to hurt economic prospects in sending countries. A simple model has been developed which shows that skilled migrants may indeed have a lower propensity to remit from a given flow of earnings. The Docquier and Marfouk (2004) data set is used to estimate an empirical equation of remittances, and evidence is found that the brain drain is associated with a smaller propensity to remit.

This article considers the argument that skilled migrants raise economic welfare at home by sending a relatively larger flow ...  Show Full Abstract  

Authors: Faini, Riccardo
Date: 2007
Journal title: World Bank economic review
Resource type: Article
Subjects: Skills and knowledge; Research; Employment;

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