Remittances and the Brain Drain: Skilled Migrants Do Remit Less

Abstract

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Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa

“…Overall, our results reveal that high-skilled migrants do send larger amounts of remittances than low-skilled migrants and thus contradict the findings of most of the previous literature based on macrodata (e.g., Faini, 2007;Adams, 2009;Niimi et al, 2010). They are, though, in line with Bollard et al (2011), who also find no robust effect of migrants' education on remittances at the extensive margin, but a positive effect at the intensive margin.…”

“…While remittances may offset some of the negative externalities of the brain drain, there is also a concern that highly educated migrants may send less remittances to their households at the origin country, suggesting that an increase in high-skill emigration will lower remittances flows (e.g., Faini, 2007;Adams, 2009;Niimi et al, 2010).…”

“…Limiting their analysis to OECD destination countries, Faini (2007), Adams (2009), and Niimi et al (2010) come to the conclusion that the adverse impact of skilled migration cannot be mitigated through remittances because migrant remittances are lower in countries with a high share of high-skilled among emigrants. Using a panel database on bilateral remittances, Docquier et al (2012) and Le Goff and Salomone (2016), on the other hand, find a positive relationship between the share of high-skilled migrants and the amount of remittances received.…”

Remittances and incentive to migrate: An epidemic approach of migration

“…10 Empirical evidence on the link between remittances and migrants' income is rather scarce and results are ambiguous (see Johnson and Whitelaw, 1974;Hoddinott, 1994;Rempel and Lobdell, 1978). More recent papers study the link between remittances and the education level of migrants, which could be seen as a proxy of their income, and results range from no impact (Naufal, 2008) to a negative (Faini, 2007;Niimi et al, 2008;Dustmann and Mestres, 2010;Duval and Wolff, 2010) or a positive impact (Schioupu and Siegfried, 2006;Bollard et al, 2011). Docquier et al (2011) build a theoretical model reconciling these different results, showing that the relationship between remittances and migrants' education is inverted-U shaped and depends on the selectivity and restrictiveness of host countries migration policies; their empirical results support their theoretical analysis.…”

Brain Drain in Globalization: A General Equilibrium Analysis From the Sending Countries' Perspective

“…(6), is set to one-third as estimated in the growth accounting literatureà la Solow (1957 28 The ratios of GDP's are computed by employing the WDI data of GDP per purchasing power parity for years 1980, 1990, and 2000, and the values in 1980 are adopted for the periods preceding 1980. For the periods following 2000, the calibration of the forecast technological progress will be discussed later when changes in resident human capital and 25 While Ratha (2003) claims that skilled migrants send more remittances due to higher earnings, empirical evidence put forth by Faini (2007) and Nimii et al (2008) suggest that, compared to their less-skilled counterpart, skilled migrants have a lower propensity to remit.…”