TY  - RPRT
        AU  - Docquier, Frédéric
AU  - Schiff, Maurice
        TI  - A Political Economy and Voicing Model of the Institutional Impact of Brain Drain, Human Capital, Inequality and Country Size
        PY  - 2021/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14460
        UR  - https://www.iza.org/index.php/publications/dp14460
        AB  - Brain drain BD, human capital h, and inequality's institutional impact is examined in a model where a rent-seeking elite taxes residents and voicing affects the likelihood of regime change. We find that BD and h's impact on institutional quality (Q) are as follows: i) Q is a U-shaped function of BD, with maximum (minimum) at BD = 0 (0 < BD1 < 1); ii) Q is a U-shaped function of h, with minimum at 0 < h1 < 1; iii) the likelihood that Q improves with BD falls with international inequality; iv) the likelihood that Q improves with h falls with domestic inequality; v) the likelihood Q improves with h falls (rises) with BD for BD < (>) BD1, and is maximized at BD = 0; vi) Q increases in a high (low) BD country under a host country's immigration promotion (restriction); vii) a high BD country's institutions improve (worsen) under a large (small) reduction in BD; viii) the latter is particularly relevant for small and micro states where BD and Q are likely to be greater than in large but otherwise similar countries.
        KW  - political economy
KW  - voicing
KW  - institutional impact
KW  - brain drain
KW  - human capital
KW  - inequality
        ER  -