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Is Migration A Good Substitute for Education Subsidies? / Docquier, Frederic
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Docquier, Frédéric.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Brain drain.
- Debt Markets.
- Developing countries.
- Economic Theory and Research.
- Emerging Markets.
- Finance and Financial Sector Development.
- Health, Nutrition and Population.
- Human capital.
- Immigration.
- Impact of migration.
- International Migration.
- Macroeconomics and Economic Growth.
- Migration.
- Policy Research.
- Policy Research Working Paper.
- Population Policies.
- Private Sector Development.
- Progress.
- Skilled workers.
- Social Development.
- Local Subjects:
- Brain drain.
- Debt Markets.
- Developing countries.
- Economic Theory and Research.
- Emerging Markets.
- Finance and Financial Sector Development.
- Health, Nutrition and Population.
- Human capital.
- Immigration.
- Impact of migration.
- International Migration.
- Macroeconomics and Economic Growth.
- Migration.
- Policy Research.
- Policy Research Working Paper.
- Population Policies.
- Private Sector Development.
- Progress.
- Skilled workers.
- Social Development.
- Physical Description:
- 1 online resource (33 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2008
- System Details:
- data file
- Summary:
- Assuming a given educational policy, the recent brain drain literature reveals that skilled migration can boost the average level of schooling in developing countries. This paper introduces educational subsidies determined by governments concerned by the number of skilled workers remaining in the country. The theoretical analysis shows that developing countries can benefit from skilled emigration when educational subsidies entail high fiscal distortions. However when taxes are not too distortionary, it is desirable to impede emigration and subsidize education. The authors investigate the empirical relationship between educational subsidies and migration prospects, obtaining a negative relationship for 105 countries. Based on this result, the analysis revisits the country specific effects of skilled migration upon human capital. The findings show that the endogeneity of public subsidies reduces the number of winners and increases the magnitude of the losses.
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