Tuesday, April 05, 2005

Increasing returns in human capital 

That's what explains this:
Guyana loses a greater proportion of its high-skilled workforce to OECD countries than any other non-member nation, the OECD reports. It finds that 83% of the country's graduates now live in an OECD country. Size is the best predictor of emigration. Smaller countries, especially African and island nations, send a higher proportion of their graduates to the OECD. Big ones, such as Bangladesh, keep most of theirs.
Hypothesis: Smart people want to work with other smart people. They gather together and experience higher income from collaboration. This happens both in education and afterwards. The graph in the article could be entered as evidence supporting the hypothesis.

H/T: Mahalanobis