Brain Drain from Europe to China in a Digital Economy Era?

Chao Ma, Zhong Zhao

EconPol Forum 23 (5), 43-47

  • In the digital economy era, the organization of labor is no longer restricted by borders
  • China’s development has increased its demand for high-skilled workers
  • We build a model where European high-skilled workers can provide services to Chinese domestic firms remotely
  • High-skilled labor demand from China increases the tightness of the high-skilled but not the low-skilled labor markets in Europe
  • Sharp contrast with traditional model where a European worker migrates to China to take a job there