Some development effects of the international migration of highly skilled persons

This paper reviews the extent to which highly (tertiary) educated emigrants from developing countries represent an economic loss or 'brain drain'. (1) It systematically reviews available data on international mobility, (2) then it examines the economic analysis of direct effects of brain drain on economic development, and it (3) finishes the review by considering the major favourable feedback effects generated by high skilled emigration. Ultimately, the empirical literature on the brain drain is disappointing in the sense that much of it depends upon the assumptions of theoretical,...  [+] Show more

This paper reviews the extent to which highly (tertiary) educated emigrants from developing countries represent an economic loss or 'brain drain'. (1) It systematically reviews available data on international mobility, (2) then it examines the economic analysis of direct effects of brain drain on economic development, and it (3) finishes the review by considering the major favourable feedback effects generated by high skilled emigration. Ultimately, the empirical literature on the brain drain is disappointing in the sense that much of it depends upon the assumptions of theoretical, albeit mathematically sophisticated, economic models. Empirical analysis or the modelling of statistical data is relatively rare. And to cap it all, the offsetting, cumulative effects of ongoing contact, return, transfer, and investment are generally not included in the theoretical literature, much less are they well-documented or measured making any assessment difficult. In short, there is plenty of evidence that concerns with a 'brain drain' are legitimate, but there is little empirical means of establishing which countries are most at risk, much less which countries are most likely to benefit.

Excerpts from executive summary.

This report is part of a series of studies conducted by the International Labour Office under the DFID-sponsored project on 'Skilled labour migration (the 'brain drain') from developing countries: analysis of impact and policy issues'. Available reports are indexed from TD/TNC 86.109 to TD/TNC 86.119.