Grossmann, Volker Stadelmann, David 2010-04-23 This paper analyzes the interaction of international migration of high-skilled labor and relative wage income between source and destination economies of expatriates. We develop an overlapping-generations model with increasing returns which suggests that international integration of the market for skilled labor aggravates between-country inequality by harming those which are source economies to begin with while benefiting host economies. The result is robust to allowing governments to optimally adjust productivity-enhancing investments which could potentially attenuate brain drain. Optimal public investment tends to decrease in response to higher emigration. application/pdf https://folia.unifr.ch/global/documents/302120 https://folia.unifr.ch/documents/302120/files/WP_SES_416.pdf eng info:eu-repo/semantics/openAccess License undefined Brain drain Between-country wage differences Public investment Total factor productivity info:eu-repo/classification/udc/33 Does International Mobility of High-Skilled Workers Aggravate Between-Country Inequality ? http://purl.org/coar/resource_type/c_18ws