Suchergebnisse

Does the emigration of highly-skilled workers deplete local human capital? The answer is not obvious if migration prospects induce human capital formation. We analyse a unique natural quasi-experiment in the Republic of the Fiji Isalnds, where political shocks have provoked one of the largest recorded exoduses of skilled workers from a developing country. Mass emigration began unexpectedly and has occurred only in a well-defined subset of the population, creating a treatment group that foresaw likely emigration and two different quasi-control groups that did not. We use rich census and administrative microdata to address a range of concerns about experimental validity. This allows plausible causal attribution of post-shock changes in human capital accumulation to changes in emigration patterns. We show that high rates of emigration by tertiary-educated Fiji Islanders not only raised investment in tertiary education in Fiji; they moreover raised the stock of tertiary educated people in Fiji - net of departures.

It is easy to learn the average income of a resident of El Salvador or Albania. But there is no systematic source of information on the average income of a Salvadoran or Albanian. We estimate a new statistic: income per natural—the mean annual income of all people born in a given country, regardless of where those people now reside. Income per natural often differs substantially from income per resident, both in its mean and in its distribution. A large part of this difference is caused by movement across borders. Indeed, for people from a number of developing countries, departing their country of birth is one of the most important sources of poverty reduction and material advancement. If economic development is that which raises human well‐being, then crossing international borders is not an alternative to economic development; it is a form of economic development.