Human Capital and Brain Drain in the Regional Development: A Case Study of Incentives

Abstract: This paper investigates the incentives of Latin American masters students to remain abroad or to return home after completing their education at Lund University in 2010. These students can be regarded as valuable resources for the economic development of their home countries. However, under the presence of market imperfections and the increasing migration of professionals from less to more developed nations, it is valuable to consider the motives behind their decision to remain abroad or to return home. By analysing the motivations it is possible to draw conclusions regarding the influential forces behind the decision to migrate and thereby minimise the threat of brain drain by increasing the return migration.