The economic effects of high skilled migration

In this study, we investigate theories and impirics that relate to migration. In particular, the effects of native high skilled migration from the Netherlands on GDI (Gross Domestic Income), the level of entrepreneurship and health are investigated. In migration literature there has been little or no attention form migration from developed countries such as the Netherlands, as developed countries in general recieved more immigrants than it lost on emigrants. Therefore, this "gap" in literature and empirics is understandible. From 2003 until 2007, the emigration exceeded immigration in The Netherlands. This change in the migration pattern leads us to studying migration from The Netherlands. Particularly interesting is that there is an increase in emigration of high skilled individuals (roughly 36% in comparison to 20% of the total population). These high skills individuals are crucial for an economy, especially for economic growth and for the ability to innovate. Therefore the focus of our research will be on the high skilled migrants. We have chosen to investigate the effects of the emigration of this group on GDI, the level of entrepreneurship, and health, because we consider these as important economic indicators. GDI is explanatory for economic growth, the level of entrepreneurship is an important component of the innovative capacity of a country, and the level of health is an important input factor for human capital. The results of our analysis are somewhat inconclusive, which is actually quite logical ofr an explanatory investigation. (1) When we observe the effect on the life expectancy (health), no significant relation is established. This result probably resides from the fact that the sample (native Dutch high skilled emigrants) is too small in comparison to the total population. (2) The level of entrepreneurship of The Netherlands is in a negative way affected by the outflow of high skilled workers. This could be a fact of concern for the Dutch government, but we urge not to rush to conclusion. Crucial on how this effect impacts the Dutch society is what these entrepreneurs will render in trade and networks. This could be an important area of further investigation. (3) Our final result is on the relation of the outflow of high skilled workers on GDI; there is no significant effect on GDI. Even when we include other variables that explain economic growth (in earlier empirical research), we find no significant relations. This probably due contrains in the available data. Unfortunately, this investigation only includes 30 observations from the period 1977 untill 2007. With these results the first steps are made understanding the complex area of migration. We urge the Dutch government to increase the research on international mobility of laborers. In particular, migrants should be studied in their motivations, destination, ethnicity and education. Only if all these data become available, conclusive results can be presented.