Human capital flight

Human capital flight is the emigration or immigration of individuals who have received advanced training in their home country. The net benefits of human capital flight for the receiving country are sometimes referred to as a "brain gain" whereas the net costs for the sending country are sometimes referred to as a "brain drain". In occupations with a surplus of graduates, immigration of foreign-trained professionals can aggravate the underemployment of domestic graduates, whereas emigration from an area with a surplus of trained people leads to better opportunities for those remaining. However, emigration may cause problems for the home country if trained people are in short supply there.

Research shows that there are significant economic benefits of human capital flight for the migrants themselves and for the receiving country. The consequences for the country of origin are less straightforward, with research suggesting they can be positive, negative or mixed. Research also suggests that emigration, remittances and return migration can have a positive effect on democratization and on the quality of political institutions in the country of origin.

There are several types of human capital flight:

As with other human migration, the social environment is often considered to be a key reason for this population shift. In source countries, lack of opportunities, political instability or oppression, economic depression, health risks and more (push factors) contribute to human capital flight, whereas host countries usually offer rich opportunities, political stability and freedom, a developed economy and better living conditions (pull factors) that attract talent. At the individual level, family influences (relatives living overseas, for example), as well as personal preferences, career ambitions and other motivating factors, can be considered.

The term "brain drain" was coined by the Royal Society to describe the emigration of "scientists and technologists" to North America from post–World War II Europe. Another source indicates that this term was first used in the United Kingdom to describe the influx of Indian scientists and engineers. Although the term originally referred to technology workers leaving a nation, the meaning has broadened into "the departure of educated or professional people from one country, economic sector, or field for another, usually for better pay or living conditions".

Brain drain is a phenomenon where, relative to the remaining population, a substantial number of more educated (numerate, literate) persons emigrate.

Given that the term "brain drain", as frequently used, implies that skilled emigration is bad for the country of origin, some scholars recommend against using the term in favor of more neutral and scientific alternative terms.

The positive effects of human capital flight are sometimes referred to as "brain gain" whereas the negative effects are sometimes referred to as "brain drain". According to economist Michael Clemens, it has not been shown that restrictions on high-skill emigration reduce shortages in the countries of origin. According to development economist Justin Sandefur, "there is no study out there... showing any empirical evidence that migration restrictions have contributed to development." Hein de Haas, Professor of Sociology at the University of Amsterdam, describes the brain drain as a "myth", whilst political philosopher Adam James Tebble argues that more open borders aid both the economic and institutional development of poorer migrant sending countries, contrary to proponents of "brain-drain" critiques of migration. However, according to University of Louvain (UCLouvain) economist Frederic Docquier, human capital flight has an adverse effect on most developing countries, even if it can be beneficial for some developing countries. Whether a country experiences a "brain gain" or "brain drain" depends on factors such as composition of migration, level of development, and demographic aspects including its population size, language and geographic location.