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Brain Drain and Brain GainThe Global Competition to Attract High-Skilled Migrants$
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Tito Boeri, Herbert Brücker, Frédéric Docquier, and Hillel Rapoport

Print publication date: 2012

Print ISBN-13: 9780199654826

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780199654826.001.0001

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The Effects of Brain Gain on Growth, Investment, and Employment: Evidence from OECD Countries, 1980–2005

The Effects of Brain Gain on Growth, Investment, and Employment: Evidence from OECD Countries, 1980–2005

Chapter:
(p.106) 4 The Effects of Brain Gain on Growth, Investment, and Employment: Evidence from OECD Countries, 1980–2005
Source:
Brain Drain and Brain Gain
Author(s):

Herbert Brücker

Simone Bertoli

Giovanni Facchini

Anna Maria Mayda

Giovanni Peri

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199654826.003.0006

This chapter examines the impact of the immigration of highly educated workers on employment, productivity, and capital accumulation in the recipient countries, to see whether the presumed positive impact of highly educated immigrants is actually confirmed by aggregate data analysis. The chapter identifies a robust and significant positive effect of the brain gain on employment and capital accumulation, on top of the effect produced by the total immigration rate. The chapter finds that the total inflow of immigrants does not crowd-out native employment, on the contrary, it stimulates investment even in the short term. Moreover, the share of highly educated immigrants adds a positive employment and capital accumulation effect. The chapter also analyses whether the effects of migration differ in ‘bad’ and ‘good’ economic times.

Keywords:   immigration, employment, productivity, capital accumulation, receiving countries, highly skilled migrants, business cycle, brain gain

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