EU Policies and African Human Capital Development

Brain Circulation between the European Union (EU) and Sub-Saharan Africa is a crucial ingredient in Human Capital formation in the latter. A major constraint to African development is the very low base of skilled and highly educated workers and professionals. The production of skilled workers has been low, and only recently has seen a dramatic increase. Recent papers by many authors have indicated that a channel for human capital growth has been, paradoxically, the possibility of the brain drain which serves as both an incentive mechanism and which results in higher human capital when the drainers return. After a review of some of the literature, these insights are applied to the debates raging today on European Union migration policy: the Blue Card, Migration Con-tracts, anti-Brain Drain legislation, etc. This paper argues that a careful calibration of the EU policies may enable faster Human Capital growth in Africa, while, at the same time, being beneficial to the EU by supplying critically needed skills into the EU economy. By carefully planning the production of human capital and the consequent flow of skilled migrants into Europe, the EU can assist in the development of vitally needed numbers of trained or skilled workers in Africa.

Gender bias and the female brain drain

This paper contributes to the emerging literature on gender differences in the causes and consequences of brain drain. Differentiating between gender bias in the access to economic opportunities and gender differentials in economic outcomes, we find that differences in access have a significant impact on the emigration of highly-skilled women relative to that of men. However, differentials in outcomes do not have a significant impact. Additionally, the structure of political institutions in the source countries does not have a significant impact on the difference in emigration rates.immigration, gender, brain drain

Do Migrants Improve Governance at Home? Evidence from a Voting Experiment

This paper tests the hypothesis that international migration experiences may promote better institutions at home by raising the demand for political accountability. In order to examine this question, we use a simple postcard voting experiment designed to capture the population’s desire for better governance. Using data from a tailored household survey, we examine the determinants of voting behavior in our experiment, and isolate the positive effect of international emigration on the demand for political accountability. We find that this effect can be mainly attributed to the presence of return migrants, particularly to those who emigrated to countries with better governance.international migration, governance, political accountability, institutions, effects of emigration in origin countries, household survey, Cape Verde, sub-Saharan Africa

A two-sector growth model with institutional saving and investment

This paper develops a two-sector growth model in which institutional investors play a significant role. A necessary and sufficient condition is established under which these investors own the entire capital stock in the long run. The dependence of the long-run growth rate on the behaviour of such investors, and the effects of a productivity increase are analysed

Bringing Home the Money: Xenophobia and Remittances: The Case of Germany

The determinants of migrants' remittances are the subject of this study based on German SOEP data (2001-2006). In contrast to previous studies we analyze the motives for remittances not only for foreigners but also for the broader group of individuals with a personal migration background. Major findings are: First, concerns about xenophobia lead to higher remittances. Second, income and gender has no impact on the probability to remit. Third, the acquisition of German citizenship is positively related to the amount remitted. All in all, remittances seem to be part of a personal financial allocation scheme for risk reduction.Remittances, immigrant workers, household behavior

Bringing Home the Money: Xenophobia and Remittances: The Case of Germany

The determinants of migrants' remittances are the subject of this study based on German SOEP data (2001-2006). In contrast to previous studies we analyze the motives for remittances not only for foreigners but also for the broader group of individuals with a personal migration background. Major findings are: First, concerns about xenophobia lead to higher remittances. Second, income and gender has no impact on the probability to remit. Third, the acquisition of German citizenship is positively related to the amount remitted. All inall, remittances seem to be part of a personal financial allocation scheme for risk reduction.Remittances, immigrant workers, household behavior

Dissecting Network Externalities in International Migration

Existing migrant networks play an important role in explaining the size and structure of immigration flows. They affect the net benefits of migration for future migrants by lowering assimilation costs (‘self-selection’ channel) and increase the probability of potential migrants to obtain a visa through family reunification programs (‘immigration policy’ channel). This paper presents an identification strategy allowing to disentangle these two channels. Then, it provides an empirical illustration based on US immigration data by metropolitan area and country of origin. First, we show that the overall network externality is strong: the elasticity of migration flows to network size is around one. Second, only a quarter of this elasticity is accounted for by the policy channel. Third, the policy channel was stronger in the nineties than in the eighties due to more generous family reunion program. Fourth, the global elasticity and the policy contribution are much greater for low-skilled migrants.migration, network/diaspora externalities, immigration policy

An empirical test of a Neo-Malthusian theory of fertility change

Some neo-Malthusians regard fertility as being kept in check by scarcities and constraints and, conversely, as being raised by economic prosperity. Since out-migration to developed countries and the receipt of food aid from developed countries relax the constraints imposed by a country’s carrying capacity, both will have a positive effect on fertility rates in developing countries. Moreover, better economic prospects will also raise fertility, all other things equal. This article provides an empirical test of these hypotheses derived from a neo-Malthusian theory of fertility change. The results fail to confirm the theory and often contradict it

Brain Drain and Institutions of Governance: Educational Attainment of Immigrants to the US 1988-2000

We use a fixed effects panel data model to investigate the impact of institutions of governance on the educational attainment of immigrants to the United States over the period 1988 – 2000. Distinguishing between the quality and stability of political institutions in the countries of origin, we find that the two characteristics of institutional structure have conflicting impacts on the nature of brain drain. Immigrants from countries with a higher quality of political institutions tend to be better educated, on the average, than immigrants from countries with institutions of lower quality. However, immigrants from countries with greater political instability tend to be better educated than immigrants from countries with more stable governments.Immigration, institutions, political instability, brain drain