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Ability drain: Size, impact, and comparison with brain drain under alternative immigration policies
Ability drain: Size, impact, and comparison with brain drain under alternative immigration policies
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Ability drain: Size, impact, and comparison with brain drain under alternative immigration policies
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Ability drain: Size, impact, and comparison with brain drain under alternative immigration policies
Ability drain: Size, impact, and comparison with brain drain under alternative immigration policies
Journal Article

Ability drain: Size, impact, and comparison with brain drain under alternative immigration policies

2017
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Overview
Ability drain’s (AD) impact seems economically significant, with 30% of US Nobel laureates since 1906 being immigrants, and immigrants or their children founding 40% of Fortune 500 companies. Nonetheless, while brain drain (BD) and gain (BG) have been studied extensively, AD has not. I examine migration’s impact on ability ( a ), education ( h ), and productive human capital or “skill” s = s ( a ,  h ), for source country residents and migrants under (a) the points system (PS) which accounts for h and (b) the “vetting” system (VS) which accounts for s (e.g., US H-1B program). The findings are as follows: (i) Migration reduces (raises) residents’ (migrants’) average ability, with an ambiguous (positive) impact on average education and skill, and net skill drain, SD, likelier than net BD; (ii) these effects increase with ability’s inequality or variance, are greater under VS than PS, and hurt source countries; (iii) the model and two empirical studies suggest average AD ≥ BD for educated US immigrants, with real income about twice the home country income; and (iv) SD holds for any BD and for a very small AD (7.4% of our estimate). Policy implications are provided.