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Human capital flight

Emigration of well-trained individuals

  • 50 min read
  • 5 chapters

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Research shows that there are significant economic benefits of human capital flight for the migrants themselves and for the receiving country. The consequences for the country of origin are positive, or mixed. Research also suggests that emigration, remittances and return migration can have a positive effect on democratization and on the quality of political institutions in the country of origin.

Types

There are several types of human capital flight:

  • Organizational: The flight of talented and highly qualified employees from large corporations.
  • Geographical: The flight of highly trained individuals and college graduates from their area of residence.
  • Industrial: The movement of traditionally skilled workers from one sector of an industry to another.

As with other human migration, the social environment is often considered to be a key reason for this population shift. In source countries, lack of opportunities, political instability or oppression, economic depression, health risks and more (push factors) contribute to human capital flight, whereas host countries usually offer rich opportunities, political stability and freedom, a developed economy and better living conditions (pull factors) that attract talent. At the individual level, family influences (relatives living overseas, for example), as well as personal preferences, career ambitions and other motivating factors, can be considered.

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