Brain Drain

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Name: Robert Pinard
Student #: A00069447
Class: Econ 3340.2 B
Professor: B. Soper
Date: 6/4/06

Question/ Problem Definition

Dose Brain Drain threatens to hurt Canadian economic prospects and competitiveness? The topic will deal with the problem of Brain Drain in The Canadian environment, how worker mobility and the Migration of skilled workers had affected the Canadian economy. Essentially the paper will outline and analysis the extent to which the movement of skilled workers causes harm to the Canadian and will show how the pattern of this movement has changed over the years. Worker mobility can be defined as the transfer or movement of workers from on location to another Brain Drain can be defined as the movement of highly skilled workers usually in the (Medical, Engineering, Information Technology and Business) out side there geographic area, for example the movement of workers from Canada to the United States. This trend has not been uncommon over the past years but now the very serious question is on how this trend is starting to impact growth and economic livelihood in countries like Canada. Dose a higher rate or worker mobility mean less prosperity for that particular country and what are the repercussions facing this outflow people on the competitiveness of an economy.

The paper will essentially look at how the Drain Brain affects economic prospects and competitiveness, by economic prospects I mean the effect that Brain Drain on the Human Capital and development of new businesses and the increase in skilled workers in Canada. In term of competitiveness I mean the degree to which Canada is able to compete with the US in terms of development and growth of the country, the question has to be asked : dose the ; loss of highly educated people put Canada at a disadvantage.

Economic Theories

One of the theories I will be using in this paper is that Brain Drain will have a direct effect on employment and economic growth. The movement of people and employment are closely related and my paper will help to analyze the affect one has on the other.

Another theory that this paper will be addressing is weather or not Brain Drain has a direct effect of the level of Human Capital in a Country. The highly educated people in a country mostly post secondary graduates seem to move out of there country in search of more promising opportunity elsewhere in the world. But at the same time a country is also receiving emigrants from other countries, do the inflow of these people help to offset the decrease of human capital in the countries economy.

Analysis
Movement of Workers
The movement of workers from one country to another generally means on thing “opportunity”. Most of the workers who migrate out of Canada are young educated people between those ages of 25 to 44, these people are usually post-secondary graduates and have a wealth of knowledge but are looking for experience. The table below show’s the amount of people who migrated from Canada to the United States between the Fiscal years 1989-2003 taken from US Department of Home Land Security.

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Between those the years of 19890-2003 an estimated 219,424 Canadians migrated to the US most of them being Youth between the ages of 25-44. The North American Free Trade Agreement (NAFTA) has made it easy for Canadians with job offers in the United States to work there by offering them a renewable one year visa, because this visa is renewable this means more people may remain in the United States. This has only added to the outflow of workers from Canada.

The problem lies that the majority of workers that are leaving the country are skilled workers those in prominent growing professions. The workers are highly-skilled workers...
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