Brain Circulation

The UN, World Bank, and OECD have, in recent years, begun to hold “brain circulation” theories as being more appropriate than the previous “brain drain” models. It is now often considered that international labor mobility provides enormous potential to increase the flow of new ideas and discoveries around the world, and can also create net economic benefits in both rich and poor nations.

An example of brain circulation

The effect of brain circulation can be seen in the labor movements between Silicon Valley and India, where former U.S. tech-company

employees—scientists, engineers, technicians, and managers—are now moving back to their hometowns in India and establishing both their own businesses and collaborative ventures with their former employers in California. These workers bring back new and valuable ideas, IT know-how, improved technology, capital, and the networks they developed in Silicon Valley.

Further effects of the circulation of workers

According to the U.S. Commission on Immigration Reform, Mexican migrants find that each year of U.S. work experience results in an 8.9% wage premium back in Mexico. So, if a Mexican worker with 10 years work experience in California decides to return home, he can