Rent-seeking activities and the 'brain gain' effects of migration

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.