Migration, Human Capital Formation, and Growth: An Empirical Investigation

We study the effect of skilled emigration on human capital formation and growth in a sample of developing countries. We find that the migration rate exerts statistically significant effects on both the level and the composition of human capital. We are able to trace the impact of these changes on the growth rate of sending countries via regression analysis and simulations. Our results show that while there are both winners and losers, almost 70% of the population in our sample suffers lower growth as a consequence of skilled migration. Moreover, the losses are concentrated in countries with low levels of technological sophistication.