Emigration and Brain Drain Evidence From the Caribbean, by….pdfVIP

WP/06/25 Emigration and Brain Drain: Evidence From the Caribbean Prachi Mishra © 2006 International Monetary Fund WP/06/25 IMF Working Paper Western Hemisphere Department Emigration and Brain Drain: Evidence From the Caribbean Prepared by Prachi Mishra1 Authorized for distribution by David O. Robinson January 2006 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper quantifies the magnitude and nature of migration flows from the Caribbean and estimates their costs and benefits. The Caribbean countries have lost 10–40 percent of their labor force due to emigration to OECD member countries. The migration rates are particularly striking for the highskilled. Many countries have lost more than 70 percent of their labor force with more than 12 years of completed schooling—among the highest emigration rates in the world. The region is also the world’s largest recipient of remittances as a percent of GDP. Remittances constituted about 13 percent of the region’s GDP in 2002. Simple welfare calculations suggest that the losses due to high-skill migration (ceteris paribus) outweigh the official remittances to the Caribbean region. The results suggest that there is indeed some evidence f