Classic view
Bhagwati and Hamada (1974) argued that when publicly educated workers leave, those remaining lose income and tax revenue. The view echoes dependency theory and world-systems theory.
Brain gain
Mountford (1997) and Stark and colleagues (1997) argued that migration prospects encourage more people to invest in education, and since only some leave, human capital at home can rise. Beine, Docquier and Rapoport (2001; 2008) found large, low-emigration countries gain while small, high-emigration ones lose.
Current debate
Gibson and McKenzie (2011) reviewed channels such as remittances, return migration and diaspora knowledge transfer, and Docquier and Rapoport (2012) synthesised the literature. Skilled emigration is also discussed as a constraint in the middle-income trap.
FAQ
- What is brain drain in simple terms?
- Highly educated people leaving their country, reducing its skilled workforce.
- Can brain drain be good?
- Some research finds migration prospects raise education and remittances and knowledge flows can benefit some countries.
Sources reviewed: 2026-10-26
References
- Bhagwati, J., & Hamada, K. (1974). The brain drain, international integration of markets for professionals and unemployment: A theoretical analysis. Journal of Development Economics, 1(1), 19–42. The classic model of brain drain losses.
- Mountford, A. (1997). Can a brain drain be good for growth in the source economy? Journal of Development Economics, 53(2), 287–303. Opened the brain gain argument.
- Stark, O., Helmenstein, C., & Prskawetz, A. (1997). A brain gain with a brain drain. Economics Letters, 55(2), 227–234. Migration prospects raise education.
- Beine, M., Docquier, F., & Rapoport, H. (2001). Brain drain and economic growth: Theory and evidence. Journal of Development Economics, 64(1), 275–289. Early evidence on brain gain.
- Beine, M., Docquier, F., & Rapoport, H. (2008). Brain drain and human capital formation in developing countries: Winners and losers. The Economic Journal, 118(528), 631–652. Winners and losers by country.
- Gibson, J., & McKenzie, D. (2011). Eight questions about brain drain. Journal of Economic Perspectives, 25(3), 107–128. Accessible overview of key questions.
- Docquier, F., & Rapoport, H. (2012). Globalization, brain drain, and development. Journal of Economic Literature, 50(3), 681–730. Comprehensive literature review.