A BRAIN GAIN WITH A BRAIN-DRAIN

We study human capital depletion and formation in an economy open to o ut-migration, as opposed to an economy which is closed. Under the assu mption of asymmetric information, the enlarged opportunities and the a ssociated different structure of incentives can give rise to a brain g ain in conjunction with a brain drain. Migration by high-skill members of its workforce notwithstanding, the home country can end up with a higher average level of human capital per worker. (C) 1997 Elsevier Sc ience S.A.