This paper studies migration and rent-seeking activities in a framework of heterogeneous ability. It is shown that, despite the depletion of productive resources known as the 'brain drain,' the possibility of migration could sufficiently reduce participation in rent-seeking activities and increase participation in productive activities such that the net effect of migration is a 'brain gain.' Moreover, the possibility of migration that sufficiently enlarges the relative reward to ability in the productive sector could result in qualitative improvements in the allocation of talent.
ASJC Scopus subject areas
- Economics and Econometrics