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The Geography of Talent: Development Implications and Long-Run Prospects

Author

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  • Michal BURZYŃSKI

    (CREA - University of Luxembourg)

  • Christoph DEUSTER

    (IRES - Université Catholique de Louvain)

  • Frédéric DOCQUIER

    (Université Catholique de Louvain)

Abstract

This paper characterizes the recent evolution of the geographic distribution of talent, and studies its implications for development inequality. Assuming the continuation of recent educational and immigration policies, it produces integrated projections of income, population, urbanization and human capital for the 21st century. To do so, we develop and parameterize a two-sector, two-class, world economy model that endogenizes education decisions, population growth, labor mobility, and income disparities across countries and across regions/sectors (agriculture vs. nonagriculture). We find that the geography of talent matters for global inequality, whatever the size of technological externalities. Low access to education and the sectoral allocation of talent have substantial impacts on inequality, while the effect of international migration is small. We conclude that policies targeting access to all levels of education and sustainable urban development are vitalto reduce demographic pressures and global inequality in the long term.

Suggested Citation

  • Michal BURZYŃSKI & Christoph DEUSTER & Frédéric DOCQUIER, 2018. "The Geography of Talent: Development Implications and Long-Run Prospects," Working Papers P221, FERDI.
    • Handle: RePEc:fdi:wpaper:4256
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    1. Liene Leikuma-Rimicane & Vera Komarova & Jelena Lonska & Natalya Selivanova-Fyodorova & Inta Ostrovska, 2021. "The role of talent in the economic development of countries in the modern world," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 488-507, December.
    2. Michal burzynski & Christoph Deuster & Frédéric Docquier, 2018. "The Geography of Talent: Development Implications and Long-Run Prospects," LIDAM Discussion Papers IRES 2018002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    More about this item

    Keywords

    human capital; migration; Urbanization; growth; inequality.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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