Estimating some key parameters in the brain drain taxation model

This paper attempts an estimate of the supply function of qualified emigrants from 23 countries into the U.S. by comparing the wages of professionals in the country of destination to those in the country of origin. The results have shown that the relative wage is a strong explanatory variable, the implied supply elasticity being of the order of 0.4. Among the other variables tried, distance was found to be unimportant, while relative per capita income had one half the explanatory power of relative wages. It was also found that a surtax of the Bhagwati type would have a negligible deterrent effect on the number of emigrants, therefore providing a pure revenue source to LDCs.