The migration of high-skilled workers, sometimes referred to as 'brain drain', is usually seen as negative for origin countries. New research suggests this is an incomplete story—highlighting the channels through which emigration can benefit these countries: the 'brain gains'.
Editor's note: This episode of VoxDevTalks is also available on Spotify, Apple Podcasts, and YouTube.
In this episode of VoxDevTalks, Catia Batista and Caroline Theoharides discuss their recent evidence review with Daniel Han, Johannes Haushofer, Gaurav Khanna, David McKenzie, Ahmed Mushfiq Mobarak and Dean Yang on the complex dynamics of high-skilled migration, challenging the assumption that the emigration of talented individuals from low-income countries inevitably leads to detrimental brain drain. Instead, they outline the growing evidence on how migration can also generate positive brain gain effects.
Why countries pursue high-skilled immigration
Developed countries, particularly those with labour shortages, are actively designing immigration policies to attract highly skilled workers.
"One of the key goals of immigration policy is to reduce critical labour and skill shortages... it’s often the case that it’s more politically palatable to bring in these highly skilled immigrants." Theoharides
These policies focus on attracting highly educated individuals whose skills are in demand, such as medical professionals, engineers, scientists, and IT workers. However, migrants’ motivations may be more varied.
"Many times, most of these talented migrants are young people that are looking for international experience abroad." Batista
While some migrants seek better wages and career prospects, others leave their home countries due to lack of infrastructure to support their professions.
Mapping the scale of skilled migration
The flow of skilled migrants is substantial, particularly from low-income to OECD countries. The statistics are striking: 91% of PhD holders from Ethiopia are abroad, compared to only 3% of PhD holders from Germany.
"Broadly, 18% of all individuals from low-income countries with a bachelor's degree are living in the OECD." Theoharides
Migration has also increased in recent years, with the share of migrants holding tertiary education rising from 28% to 38% between 2000 and 2020. Many of these highly skilled migrants come from countries such as India, China, the Philippines, and Mexico.
Brain drain or brain gain? Challenging assumptions
The central question of a growing body of research is whether this migration represents a loss or a potential gain for origin countries.
"Most people just assume brain drain… but it could be, for example, that when educated people are leaving the country, they actually incentivise people back home to invest more in education." Batista
Their research argues that the departure of skilled individuals can have several benefits:
- It may encourage higher educational attainment among those who remain.
- Migrants can return with new skills and capital.
- Diaspora networks can increase foreign direct investment (FDI) and trade.
- Financial remittances can fund further education and entrepreneurial ventures.
"The possibility of brain gains, that the benefit for origin countries, is surely there through a variety of channels." Batista
Migration can expand education at home
Theoharides’ research on Filipino nurses provides a powerful example of this 'brain gain' effect. In the early 2000s, the US expanded visas for foreign nurses, prompting a surge in nursing enrolments in the Philippines. "This resulted in almost 114,000 newly licensed nurses over this period," she explains, with about 86,000 of these remaining in the Philippines.
However, she cautions that these effects depend heavily on local educational capacity.
"Without such a supply response, the brain gain effects that we find might not be possible." Theoharides
Similarly, in India, when the H-1B visa cap in the US was relaxed for IT workers, India saw a significant increase in its IT workforce.
Remittances do more than support consumption
Remittances are often viewed as mere financial support for consumption, but the podcast emphasises their broader developmental role.
"It may be that these remittances that you are sending, that are fuelling consumption, are actually a necessary condition for people to be able to study." Batista
She highlights that remittances can fund school supplies, tuition, and living costs, enabling individuals to pursue education rather than work prematurely.
Remittances can also support investments in small businesses and foster societal changes.
"Financial remittances… do provide a lot of important basic conditions for people then to invest in education, to promote political and societal change." Batista
Diaspora networks as engines of investment and innovation
The diaspora plays a critical role in sustaining links with home countries, often acting as a conduit for investment, trade, and knowledge transfer.
"When there are larger migrant networks, there’s more FDI to migrants’ origin countries." Theoharides
These networks can increase manufacturing output and facilitate access to new markets. However, she also notes that context matters.
"Skilled workers who might be departing from conflict zones or places with lots of political repression... might be less likely to invest at home." Theoharides
The transfer of knowledge can happen through returning migrants or remote connections, particularly in the digital age.
"These returnees bring back ideas, they bring back insights, they bring back practices from abroad that can just broadly enhance this knowledge base." Theoharides
Migration’s ripple effects on political and social norms
Migration can also shift social norms in home countries, including reproductive health behaviours and fertility choices through the transmission of norms from destination countries.
"When people leave, when they keep in touch with people back home, they actually do transmit the possibility of doing things in different ways." Batista
However, the impact depends on the values of the host country. Migrants moving to places with strong democratic institutions often promote progressive changes at home, but migration to more conservative societies can also reinforce traditional norms.
Policy recommendations: Maximising the benefits of migration
The overarching policy message is clear: policymakers should not automatically seek to restrict high-skilled emigration.
"Do not assume a brain drain. Do not assume that, because people are leaving, the origin country will be harmed… We present enough rigorous evidence from different contexts that shows that there is surely the possibility that high-skilled immigration will benefit origin countries." Batista
However, she also cautions that these benefits are not guaranteed. To realise the potential of brain gain, origin countries must invest in their education systems, create better working conditions, and ensure that local economies can absorb skilled labour.
Theoharides highlights that despite increased numbers of licensed nurses in the Philippines "lots of Filipino hospitals report shortages of healthcare workers" because poor working conditions still push nurses to emigrate or work outside their field.
They also discuss the need for more research, particularly in low-income countries and over longer timeframes, to better understand the full impact of these migration patterns. They advocate for testing innovative policy solutions, such as Global Skills Partnerships that connect origin and destination countries, and strategies to engage diasporas in local development, whether or not they return.
"More than necessarily trying to attract people back home is to make sure that there are good conditions at home, so that the country can benefit from those that decide to emigrate." Batista