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Brain drain or brain gain? Technology diffusion and learning on-the-job

Sampson, Thomas (2013) Brain drain or brain gain? Technology diffusion and learning on-the-job. Journal of International Economics, 90 (1). pp. 162-176. ISSN 0022-1996

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Abstract

This paper studies technology transfer when technology is embodied in human capital and learning requires on-the-job communication between managers and workers. Patterns of technology diffusion depend on where high knowledge managers work and how much time they allocate to training workers. Managers appropriate the surplus training creates and in the open economy managers face a cross-country trade-off between labor costs and the value of knowledge transfer. Complementarity between country level efficiency and managerial knowledge makes learning more valuable in the North meaning that high knowledge managers choose to work in the North and globalization precipitates a brain drain of high knowledge Southern agents to the North. The brain drain reduces learning opportunities in the South and exacerbates cross-country technology differences.

Item Type: Article
Official URL: http://www.journals.elsevier.com/journal-of-intern...
Additional Information: © 2012 Elsevier
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: F - International Economics > F2 - International Factor Movements and International Business
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M53 - Training
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 03 Dec 2012 15:25
URL: http://eprints.lse.ac.uk/47582/

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