Return Migration as a Channel of Brain Gain

Karin Mayr, Giovanni Peri

NBER Working Paper No. 14039
Issued in May 2008
NBER Program(s):International Trade and Investment, Labor Studies

Recent theoretical and empirical studies have emphasized the fact that the prospect of international migration increases the expected returns to skills in poor countries, linking the possibility of migrating (brain drain) with incentives to higher education (brain gain). If emigration is uncertain and some of the highly educated remain, such a channel may, at least in part, counterbalance the negative effects of brain drain. Moreover, recent empirical evidence seems to show that temporary migration is widespread among highly skilled migrants (such as Eastern Europeans in Western Europe and Asians in the U.S.). This paper develops a simple tractable overlapping generations model that provides an economic rationale for return migration and which predicts who will migrate and who will return among agents with heterogeneous abilities. We use parameter values from the literature and the data on return migration to simulate the model and quantify the effects of increased openness on human capital and wages of the sending countries. We find that, for plausible values of the parameters, the return migration channel is very important and combined with the incentive channel reverses the brain drain into significant brain gain for the sending country.

download in pdf format
   (457 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14039

Users who downloaded this paper also downloaded* these:
Kuhn and McAusland w12761 The International Migration of Knowledge Workers: When is Brain Drain Beneficial?
Commander, Kangasniemi, and Winters The Brain Drain: Curse or Boon? A Survey of the Literature
Agrawal, Kapur, and McHale w14592 Brain Drain or Brain Bank? The Impact of Skilled Emigration on Poor-Country Innovation
Hanson w14490 The Economic Consequences of the International Migration of Labor
Borjas and Bratsberg w4913 Who Leaves? The Outmigration of the Foreign-Born
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us