ABSTRACT
Summary: Emigration is when people leave their home country with the intent to settle in another country. This chapter discusses the effects of emigration on the home, or source, country. Since many migrants are workers, emigration may affect the labor market in the source country. Migration by high-skilled workers may be of particular concern to source countries. Although economists and policymakers have traditionally focused on the negative consequences of high-skilled emigration, or so-called brain drain, research also identifies a number of positive consequences, or “brain gain.” This chapter also discusses the theory and evidence on the effects of remittances, or money and in-kind transfers sent by migrants to family members in the source country. The chapter concludes with a discussion of the possible impact of emigration on political, economic and social institutions in the source country.
