Emigration and brain drain: Evidence from the caribbean

This paper quantifies the magnitude and nature of migration flows from the Caribbean and estimates their costs and benefits. The Caribbean countries have lost 10-40 percent of their labor force due to emigration to OECD member countries. The migration rates are particularly striking for the high-skilled labor force. Many countries have lost more than 70 percent of their labor force with more than 12 years of completed schooling--among the highest emigration rates in the world. The region is also the world's largest recipient of remittances as a percent of GDP. Remittances constituted about 13 percent of the region's GDP in 2002. Simple welfare calculations (under very conservative assumptions of elasticities) suggest that the losses due to high-skill migration (ceteris paribus) outweigh the official remittances to the Caribbean region.