5 High-Skilled Migration and Productivity Growth
Whereas the previous section has examined the interaction between migration on physical capital formation, particularly high-skilled migration, is potentially important for the formation of knowledge capital and productivity growth as well. For instance, since many decades the US has attracted talented people from abroad to places like Silicon Valley and to elite universities. As documented by Saint-Paul (2004), among others, high-skilled immigrants often come from other advanced regions like Europe.80 While we would expect high-skilled immigrants to contribute to innovation and productivity growth in their host countries, brain drain may be detrimental in their home countries. In this section, ...
