Brain drain and income distribution Aida Galiano, José Gabriel Romero
By: Galiano, Aida
.
Contributor(s): Romero, José Gabriel.
Material type: 
ArticlePublisher: 2018Subject(s): FUGA DE CEREBROS | RENTA | DISTRIBUCION | MODELOS ECONOMETRICOSOnline resources: Click here to access online
In:
Journal of Economics v. 124, n. 3, 2018, p. 243-267Summary: In a context in which increased income inequality has raised much concern, and skilled workers move easily across countries, an important question arises: how does the brain drain affect income distribution in the source economy? We address
this question and introduce two contributions to the literature on brain drain. First, we present and solve a simple stylized model to study whether and, if so, how the brain drain affects the distribution of income, in a context in which higher education
is publicly financed with general taxes. Second, we explore empirically the effect of an increase in skilled emigration on income distribution. A key prediction of our theoretical model is the existence of a non-monotonic relationship between income
inequality and emigration of skilled workers. Our empirical data confirm this result, showing a statistically significant inverse U-shaped form.
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| OP 801/2018/124/1 Journal of Economics | OP 801/2018/124/2 Journal of Economics | OP 801/2018/124/3 Journal of Economics | OP 801/2018/124/3-1 Brain drain and income distribution | OP 801/2018/125/2 Journal of Economics | OP 801/2018/125/2-1 Taxation and the sustainability of collusion | OP 801/2018/125/2-2 Foreign competition and optimal privatization with excess burden of taxation |
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Resumen.
Bibliografía.
In a context in which increased income inequality has raised much concern, and skilled workers move easily across countries, an important question arises: how does the brain drain affect income distribution in the source economy? We address
this question and introduce two contributions to the literature on brain drain. First, we present and solve a simple stylized model to study whether and, if so, how the brain drain affects the distribution of income, in a context in which higher education
is publicly financed with general taxes. Second, we explore empirically the effect of an increase in skilled emigration on income distribution. A key prediction of our theoretical model is the existence of a non-monotonic relationship between income
inequality and emigration of skilled workers. Our empirical data confirm this result, showing a statistically significant inverse U-shaped form.
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