UNIVERSITY OF GHANA

TERM PAPER SECOND SEMESTER 2023/24

ECON472: LABOUR ECONOMICS II (3 Credits)

BRAIN DRAIN (MIGRATION)

GROUP 16

TABLE OF CONTENT

1. INTRODUCTION
2. MIGRATION
3. BRAIN DRAIN
4. STATISTICAL FINDINGS
5. CAUSES OF BRAIN DRAIN
6. EFFECTS OF BRAIN DRAIN (IMPACT ON HOST COUNTRY AND ORIGIN
COUNTRY)
7. POLICY INTERVENTION
8. STRATEGY OF GOVERNMENT
9. CONCLUSION
GROUP MEMBERS
Names Student ID LinkedIn Account
Afriyie Harriet 10896601 https://www.linkedin.com/in/harriet-nyarko-afriyie-
Nyarko b537a531b?utm
Awakere 10896672 https://www.linkedin.com/in/desmond-awakire-
Desmond Abipika a193a524a?utm
Dautey Ransford 10896762 https://www.linkedin.com/in/dautey-ransford-
Kofi Tettey 737207226?utm
Agyeman Wilfred 10896791 https://www.linkedin.com/in/wilfred-agyemang-
466b39314?utm
Amakye Philip 10896800 https://www.linkedin.com/in/philip-desmond-amakye-
Desmond 54ab3631b?utm
Ocran Georgina 10897006 https://www.linkedin.com/in/georgina-ocran-
a5b84231b?utm
Awu Godfred 10897094 https://www.linkedin.com/in/godfred-awu-danso-
Danso 442318266?utm
Tetteh Tracy 10897460 https://www.linkedin.com/feed/?trk=guest_homepage-
Yemoley basic_nav-header-signin
Obeng Keren 10897475 https://www.linkedin.com/in/keren-obeng-
Ethel b5664b28b?utm
Obeng- 10897716 http://linkedin.com/in/janice-obeng-tweneboah-
Tweneboah Janice 2a1314306

INTRODUCTION

Migration is the mass movement of people from one place to another with the intent of settling,
temporarily or permanently. This movement can occur within a country (Internal migration) or
outside a country (International migration). Revensteins's law of migration (1885) suggests that
migration is governed by a series of "laws" or general principles. Several factors led to people
moving from one place to another.

The Neoclassical Economic Theory views migration as an individual decision based on cost-
benefit analysis while the New Economic of Labor Migration (NELM) considers migration as a
household decision. However, the push-pull theory explains migration by identifying "push"
factors that drive people away from their current location and "pull" factors that attract them to a
new area.

Brain Drain refers to the mass emigration of highly skilled and educated individuals from one
country to another. Normally involves professionals such as doctors, engineers, scientists, and
academia among others seeking better opportunities abroad. Brain Drain is a type of migration.
Several theories attempt to explain this phenomenon.

Human Capital Theory (migration higher in highly skilled and educated individuals into places
they can maximize their returns on investment). The theory posits that when individuals realize
their investments in education, skill acquisition and experiences would not be able to maximize
their returns in their own country, there will be the high possibility of them moving out to
countries they think they can be able to maximize their returns.

The push-pull theory also lists the factors responsible for highly skilled and educated individuals
to emigrate into two categories (Push and pull factors). The push-pull theory explains migration
of highly skilled and educated individuals by identifying "push" factors that drive people away
from their current location and "pull" factors that attract them to a new area. For example, push
factors in Ghana such as high interest rates, low income, unemployment, high standard of living
etc pushing Doctors, nurses, scientists, teachers etc to other countries where they can maximize
their returns.

STATISTICAL FINDINGS

Here are some empirical evidence and statistics on brain drain in Ghana from 2009 to 2024:

1. Emigration of Ghanaian Professionals: Between 2009 and 2014, an estimated 12,000

Ghanaian professionals emigrated to developed countries, with 60% being doctors, nurses, and
other health professionals (Source: Ghana Health Service, 2014).

2. Brain Drain Rate: A study published in 2019 found that Ghana's brain drain rate increased
from 10.4% in 2009 to 14.1% in 2017 (Source: International Journal of Development and
Sustainability, 2019).
3. Education Sector Brain Drain: A study published in 2020 found that between 2009 and 2019,
an estimated 1,500 Ghanaian teachers emigrated to the United Kingdom alone (Source: Journal
of Education and Practice, 2020).

4. Health Sector Brain Drain: According to the Ghana Medical Association, the country lost an
estimated 400 doctors between 2010 and 2019, with many emigrating to the United States,
United Kingdom, and Canada (Source: Ghana Medical Association, 2019). This means that the
more the migration from this country moves to another country it makes Ghana loose
quality professionals.
Ghana human flight and brain drain index, 0 (low) – 10 (high).

For that indicator, we provide data for Ghana from 2016 to 2023. The average value for Ghana
during that period was 7.58 index points with a minimum of 6.8 index points in 2023 and a
maximum of 8.2 index points in 2017. The latest value from 2023 is 6.8 index points. For
comparison, the world average in 2023 based on 177 countries is 5.17 index points. (source:
Globaleconomy.com)

CAUSES FOR BRAIN DRAIN

 Low wages and salaries: Low wages are one of the major causes of brain drain. Skilled
individuals may feel undervalued and underpaid in their home country, leading them to
seek better compensation abroad. Low wages and salaries can lead to brain drain by
making skilled individuals seek better-paying opportunities abroad. It can force highly
skilled workers to leave due to economic necessity and make them feel undervalued. Low
wages can also put countries or industries at a competitive disadvantage in attracting and
retaining top talent.
  Limited job opportunities: Limited job opportunities can also contribute to brain drain.
When there are few job openings, especially in fields that require specialized skills,
talented individuals may seek opportunities elsewhere. A lack of job openings or career
advancement possibilities in their field may force them to look for opportunities
elsewhere. This can lead to a loss of human capital, as highly skilled workers are forced
to look abroad for jobs.
 Political instability and unrest: Brain drain can result from political instability and
unrest, which fosters a climate of uncertainty, restricts opportunities, and puts individuals'
safety at risk. Uncertainty, conflict, or frequent changes in government policies can create
an unfavorable environment, driving skilled individuals to seek stability abroad. This can
lead to a deterioration in living conditions and reduced access to essential resources. To
escape persecution, violence, or discrimination, talented individuals may choose to leave.
By stabilizing the political environment, governments can stem the tide of brain drain.
 Poor living standards: Inadequate infrastructure or housing can make it difficult for
skilled individuals to maintain a decent quality of life, prompting them to seek better
living conditions abroad. Poor living standards can drive brain drain by offering a low
quality of life. Limited access to necessities like healthcare and education can push
individuals to leave. Inadequate public services and environmental concerns can also
contribute to migration which leads to brain drain. A high cost of living can make it
difficult for individuals to afford basic needs.
 Social inequality: Social insecurity can contribute to brain drain through feelings of
inadequacy and undervaluation. Discrimination, unequal opportunities, or social injustice
can drive skilled individuals to leave in search of a more equitable society. This leads to a
loss of talent, affecting economic and social development. Countries lose skilled workers,
hindering progress and innovation

EFFECTS OF BRAIN DRAIN.

Migration leading to brain drain can positively and negatively impact both host and origin
countries.

Host country (Positive effects):

  Talent Acquisition: Gaining skilled professionals from other countries can boost the
economic growth of the destination country, enhance productivity, and foster innovation.
When individuals who have acquired the required skills needed for their field of
professions in their home countries emigrate to more developed countries, this act boosts
the number of professionals in the host country which eventually leads to greater
economic development
 Knowledge Transfer: The influx of highly skilled migrants can facilitate the transfer of
knowledge and expertise, benefiting various industries and sectors. The host country
which accommodates the migrants into the country gets more experience and
knowledgeable personnel which they will contribute towards the growth of the economy
which they will boast the economy
 Filling Gaps: Skilled migrants can fill labor shortages in specialized fields, contributing
to a more efficient and dynamic labor market. Migrants fill vacant positions, addressing
labor shortages and ensuring continuity of essential services and industries. By filling
labor gaps, migrants contribute to increased productivity, economic output, and growth.
 Competition: Increased competition in certain high-skill job markets, potentially leading
to higher standards and better outputs. Migrants bring new ideas, skills, and perspectives,
driving innovation and entrepreneurship. Competition from migrants can encourage
native-born workers to improve their skills and productivity. Competition from migrants
can lead to increased economic activity, GDP growth, and job creation.

Host country (Negative effects)

 Culture dilution: Rapid cultural changes due to the influx of migrants can lead to
concerns about the erosion of the host country's cultural identity and traditions. When
skilled individuals e.g doctors nurses, accountants etc leave their home country to go to
another country, they bring with them their cultural background, traditions, values and
beliefs. This invasion of multiple cultures can enrich the social aspect of the host country
host country. This has both a positive and negative effect. The positive effect leads new
cultural ideas and innovation. While the negative effect is that individuals who leave their
 home country now must adopt to new ways of living regardless of how irrational some of
these ways may be.
 Overburdened Services: An influx of migrants can strain healthcare systems, leading to
longer waiting times and reduced quality of care for both migrants and natives. Increased
demand for healthcare, education, and social services can lead to shortages and decreased
quality. Influx of migrants can lead to housing shortages, increased rents, and
homelessness. This can lead to traffic congestion, longer commute times, and strain on
public transportation and strain on natural resources. As migrants move into a country, it
causes population to increase leading to food security concerns, particularly if migrants
are concentrated in urban areas.

Origin countries (Positive effects):

 Financial Inflows: Migrants often send money back to their home countries, providing a
significant source of income for families and communities. This can lead to improved
living standards and poverty reduction. Migrants send money back home, providing
financial support to families and communities, reducing poverty and improving living
standards. Remittances contribute to the origin country's foreign exchange earnings,
helping to stabilize the currency and improve the balance of payments. This can increase
consumer spending, boosting demand for local goods and services, and supporting
economic activity. Financial inflows can help reduce poverty and income inequality in
the origin country.
 Increases Investment: Remittances can be used to invest in local businesses, education,
and infrastructure, fostering economic development. Brain drain leads to an increase in
investment in the countries where migrants leave. When skilled individuals emigrate to
seek better opportunities elsewhere, they acquire new skills, knowledge, and experiences.
Due to this, these migrants may send money in the form of remittances back to their
relatives and friends to invest in businesses. In some cases, these migrants even return
with new expertise and resources to contribute to the development of their home
 country's economy. This circulation of skills and financial resources can result in
increased investment and economic growth in the migrants' home countries.
 Skill and Knowledge Transfer: Migrants who return to their home country often bring
back new skills, knowledge, and expertise acquired abroad, which can benefit local
industries and institutions.
 Networks and Collaboration: Migrants can establish professional networks and
collaborations between their home and host countries, facilitating knowledge transfer and
technological advancements.

Origin countries (Negative effects):

 Reducing human capital: Reducing human capital means the depletion or erosion of a
country's or organization's intellectual and skill-based resources. Human capital
encompasses the knowledge, skills, expertise, and experience of individuals, which are
essential for driving innovation, productivity, and economic growth. So in a case where
most of the active and energetic population leave the country in such of greener pastures
outside, it causes reduction of their labour force who would have helped in developing
most aspect of the economy. Losing skilled workers can diminish a country's innovation
capacity and competitiveness.
 Decreasing economic productivity: Brain drain can lead to reduced economic output
and slower growth. A shortage of skilled workers can lead to lower productivity levels
and impede innovation and technological advancements. Developing countries have
continuously raised serious questions about the negative impact of brain drain on
economic growth as well as national productivity and competitiveness. When skilled
workers emigrate, they take with them their expertise, knowledge, and innovative ideas,
leaving behind a void that cannot be easily filled. This leads to reduced innovation, as
fewer skilled workers mean less research, development, and innovation. The remaining
workforce may struggle to maintain productivity levels, resulting in decreased
efficiency and output
 Depleting the workforce, especially in the healthcare and education sector: Shortages
of medical professionals and educators can compromise public health and education
 systems. Critical sectors like healthcare and education can be severely affected, leading to
a decline in the quality and availability of essential services.
 Impact on innovation and R&D: Brain drain usually involves the emigration of highly
skilled and experienced researchers, academic scholars etc to seek greener pastures.
When this happens, the lost in professionals, researchers and innovators who could have
helped in research projects will immediately slow down on-going research and adversely
diminish overall capacity for innovation. In the wider concern, the shortage of skilled
workers can limit the ability of institutions and companies to conduct advanced research
and develop new technologies. this can affect the progress in various field, from science
and technology to health and engineering. It can also diminish the educational and
training standards in the country. This is because with fewer experts in the field,
educational institutions such as universities, colleges etc may face difficulties in
maintaining high standards for training the next generation of researchers, professionals
and innovators. Loss of talent can hinder research and development, limiting innovation
and progress.

POLICIES AND INTERVENTIONS

Policies to mitigate brain drain in Ghana:

In addressing brain drain, governments can implement several strategies:

1. Improve Economic Conditions: By enhancing job opportunities and increasing wages in

highly skilled sectors, countries can create an environment that retains talent and attracts
expatriates to return.

When skilled professionals have access to well-paying jobs that match their expertise, they are
less likely to seek opportunities abroad. Investing in the growth of industries that rely on highly
skilled workers, such as technology, healthcare, and research, can generate more attractive career
prospects domestically.
Moreover, offering competitive salaries and benefits packages comparable to those in developed
countries can incentivize skilled workers to stay or return to their home countries. This economic
development strategy helps build a critical mass of educated professionals and entrepreneurs,
turning a "vicious circle" of brain drain into a "virtuous one" of brain gain.

2. Strengthen Education: Expand access to quality tertiary education and vocational training,
ensuring that graduates find local employment opportunities. Strengthening education is a key
policy that governments can implement to address brain drain. By expanding access to quality
tertiary education and vocational training, countries can ensure that graduates find local
employment opportunities that match their skills and expertise.

When there are sufficient high-quality educational institutions that provide relevant, market-
driven curricula, students are more likely to stay in their home countries after graduation.
Investing in STEM fields, entrepreneurship programs, and research facilities can generate a pool
of skilled professionals who contribute to domestic innovation and economic growth.

Moreover, offering scholarships, grants, and student loan programs can make education more
accessible, especially for underprivileged groups. This helps build a diverse, talented workforce
that reflects the country's demographics and has a vested interest in its development.

By strengthening education, governments can create a favorable environment for skilled

professionals to thrive, reducing the incentive to seek opportunities abroad and turning brain
drain into brain gain

3. Support Gender Equality: Address labor market discrimination against women to retain
high-skilled female professionals. The government can help support gender equality by
implementing strategies and actions which can be taken on individuals. There should be
development and enforcement of policies that ensure equal opportunities and non-discrimination
in the workplace. this can be done by providing parental leave and flexible work arrangement to
support both men and women.

The government can also provide the same allowance such as tax allowance to women in the
workplace. For example, tax allowance such as dependent relief, children education relief, aged-
dependent relief etc can also be made available to women in the country. This will help make
women also feel valued in the country, hence less willing to move out of the country.

4. Encourage Diaspora Engagement: Foster connections with expatriates through remittances

and investment initiatives. Extending rights and obligations to diaspora communities, such as
dual citizenship, voting rights, and tax incentives. Creating diaspora institutions like formal state
offices dedicated to emigrants and their descendants, including ministries, departments, or inter-
departmental committees. Organizing events and initiatives to celebrate the diaspora's
contributions, such as “The year of return “. Facilitating knowledge transfer and sharing through
temporary return programs for highly skilled diaspora members and networking opportunities
between national institutions and diaspora partners. Engaging with diaspora associations and
NGOs, as well as different levels of government, to coordinate diaspora engagement efforts and
create synergies among stakeholders.

5. Tax Incentives for Returnees: Create favorable conditions for returning migrants to leverage
their skills in their home countries. There is also some promising evidence that suggests
governments can successfully encourage the return of their high-skilled diaspora by providing
tax incentives to returning emigrants examples of tax incentives that can be implemented are
foreign tax credits, investment allowances, tax holidays and hybrid tax credits. The return of
migrants can support economic development, especially when they bring capital and knowledge,
and when their home countries provide the right conditions for them to make full use of their
skills and experience.

6. Emigration policies: The government should implement policies that would force migrants to
give back to their country of origin. This can be in the form of investment or returning to
contribute to the growth and development of the country.

STRATEGY IMPLEMENTED BY THE GOVERNMENT OF GHANA

The "Year of Return" was a government policy launched by the Ghanaian government in 2019
but took place in December 2021 to commemorate the 400th anniversary of the arrival of
enslaved Africans in the United States, which was aimed at encouraging people of African
descent to return to their ancestral homeland and fostering economic growth through tourism and
investment and also by strengthening ties between Ghana and the African diaspora which was a
good initiative to help reduce brain drain.

By implementing these policies, developing countries can reduce the loss of skilled workers and
promote their growth, human capital, and drive economic growth and development.

REFERENCES

-Ghana Human flight and brain drain - data, chart | TheGlobalEconomy.com

https://images.app.goo.gl/H3rSji4N3z919ZCW8

https://servantboy.com/causes-effects-brain-drain-developing-countries/

-International Journal of Development and Sustainability. (2019). Brain Drain in Ghana: An

Empirical Analysis.

- Journal of Education and Practice. (2020). Brain Drain in the Education Sector in Ghana.

- Ghana Medical Association. (2019). Report on the Migration of Ghanaian Doctors.

- https://fastercapital.com/content/Brain-Drain-in-the-Education-Sector--How-it-Impacts-
Knowledge-Transfer.html
GROUP MEMBERS
Names Student ID LinkedIn Account
Afriyie Harriet 10896601 https://www.linkedin.com/in/harriet-nyarko-afriyie-
Nyarko b537a531b?utm
Awakere 10896672 https://www.linkedin.com/in/desmond-awakire-
Desmond Abipika a193a524a?utm
Dautey Ransford 10896762 https://www.linkedin.com/in/dautey-ransford-
Kofi Tettey 737207226?utm
Agyeman Wilfred 10896791 http://www.LinkedIn.com/in/resirelief-agency-
756841314/
Amakye Philip 10896800
Desmond
Ocran Georgina 10897006 https://www.linkedin.com/in/georgina-ocran-
a5b84231b?utm
Awu Godfred 10897094 https://www.linkedin.com/in/godfred-awu-danso-
Danso 442318266?utm
Tetteh Tracy 10897460 https://www.linkedin.com/feed/?trk=guest_homepage-
Yemoley basic_nav-header-signin
Obeng Keren 10897475 https://www.linkedin.com/in/keren-obeng-
Ethel b5664b28b?utm
Obeng- 10897716 http://linkedin.com/in/janice-obeng-tweneboah-
Tweneboah Janice 2a1314306