International Economics Commons^™

Exploring The Effects Of International Wage Differences On Brain Drain, Austin Martin

Undergraduate Economic Review

This paper examines how international wage differences affect brain drain by comparing the effects of skill-specific wage differences on low, medium, and high-skilled emigration. Previous literature explores qualitative factors behind migrant flow, but there is little focus on the role of wage differences in individuals’ decisions to emigrate. A relatively new data set on emigration rates by education level and a modified gravity model provide a unique analysis of bilateral migration flows. This paper finds that wage differences may have a significant and positive effect on and low-skilled emigration, but a less significant effect on high-skilled emigration or brain drain.