DT 05-25 Brain drain or brain gain? Evidence from a developing country

We contribute to the economic literature by addressing a historical concern regarding the international migration of highly skilled workers, specifically, researchers holding a doctorate degree. We analyze whether a developing country such as Uruguay experiences brain gain or brain drain by exploring a theoretical channel through which a country can benefit from emigration: return migration.

By exploiting a novel database, we build on previous literature and account for endogeneity issues due to selectivity biases that are likely to arise due to individuals’ multiple migration’ and occupational choices.

Our findings stress that the largest gains from migration are accrued to the migrants themselves. Uruguayan emigrants obtain higher labor income, increases in their productivity, and have a more heterogeneous network in terms of co-authorships, relatively more from foreign institutions and relatively less from Uruguayan ones. Therefore, the country could benefit from emigration if policies fostering international collaboration between Uruguayan researchers are implemented.

Keywords:  brain drain, brain gain, developing country, migration, human capital, occupational choice