ON-THE-JOB TRAINING AS A CAUSE OF BRAIN-DRAIN

On-the-Job Training as a Cause of Brain Drain. - This paper presents a simple model based on the assertion that the efficacy of on-the-job t raining, as well as the productivity of skills, depends on the social stock of capital. It shows that as the degree of this dependency of on -the-job training upon capital stock increases, the problem of brain d rain becomes more severe and more difficult to correct. The model may explain why the failure of foreign-educated students to repatriate is a more prevalent form of brain drain than outright migration of skille d labor. It is consistent with the repatriation pattern of Taiwanese s tudents who received post-secondary education in Japan.