Global Statistics

Brain Drain

20.07.2005 · Research Group on the Global Future

The brain drain increases the scarcity of highly needed skilled labour in developing countries and consequently reduces long-run economic growth and income. In addition, if highly educated workers continue to emigrate to richer countries, public funds spent on higher education in order to promote growth may be to a large extent inefficiently applied and better spent on sound and widespread basic education to foster domestic economic development. In order to devise policies that create incentives for the highly skilled workers to stay, a clear picture of their reasons for leaving has to be developed first. Part of the explanation may be wage differentials, differences in the quality of life, and educational opportunities for children and job security. Implementing the right policies to counter the brain drain will be of crucial importance for the economic future of the affected countries, and one of their biggest challenges.

Source: World Economic Forum 2004