The Brain Drain and Taxation: Theory and Empirical AnalysisJagdish N. Bhagwati Examines the proposal to tax the brain drain. The tax would be collected in the developed countries and the revenues would be transmitted to the less developed countries for development spending. The proposal was discussed in a conference at Bellagio (February 15-19, 1975) by a group of lawyers and economists. |
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aliens alternative analysis annual assumed assumption average Bellagio Bhagwati-Hamada brain drain Canada capita income capital-labor ratio census citizens coefficient Colombia cost of education country of origin dependent variable destination developing countries differential domestic earnings econometric economic educated labour educational costs emigration equation estimates expected wage expulsion factor rewards foreign wage function gains human capital ratio implies income taxation increase international migration Jagdish BHAGWATI labor certification labor force LDC of origin LDC professionals LDCs loss manpower marginal product measure migration flows migration tax modern sector N₁ national income nonreturn optimal tax overqualification paper percent population problem Psacharopoulos PTK immigration rate of return reduced relative revenue Sahota skilled wage skilled workers social social welfare function statistics steady-state studies tax rate tion traditional sector U.S. immigration U.S. South UNCTAD unemployment United unskilled Venezuela w₁ w₂ wage rate