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Testing the 'Brain Gain' Hypothesis: Micro Evidence from Cape Verde

Catia Batista, Aitor Lacuesta and Pedro C. Vicente

Abstract

Does emigration really drain human capital accumulation in origin countries? This paper explores a unique household survey purposely designed and conducted to answer this research question. We analyze the case of Cape Verde, a country with allegedly the highest ‘brain drain’ in Africa, despite a marked record of income and human capital growth in recent decades. Our micro data enables us to propose the first explicit test of ‘brain gain’ arguments according to which the prospects of own future migration can positively impact educational attainment. According to our results, a 10pp increase in the probability of own future migration improves the average probability of completing intermediate secondary schooling by 8pp. Our findings are robust to the choice of instruments and econometric model. Overall, we find that there may be substantial human capital gains from lowering migration barriers.

JEL Classification:

F22; J24; O15.

Keywords

brain drain; brain gain; international migration; human capital; effects of emigration in origin countries; household survey; Cape Verde; sub-Saharan Africa.


Last updated 28 August 2014 by IIIS (Email).