Economic Research and Perspectives

Economic Research and Perspectives

Investigating the Nonlinear Effects of Inequality in Income Distribution on Brain Drain in Developing Countries

Authors
ali moftakhari 1
Mohammad Jafari 2
esmaiel abounoori 3
Younes Nademi 4
1 Ph.D. Candidate in Economics, Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran
2 Associate Professor of Economics, Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran
3 Professor of Economics, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan, Iran
4 Assistant Professor of Economics, Faculty of Humanities, Ayatollah Boroujerdi University, Boroujerd, Iran
Abstract
Income inequality and efforts to its reduction it is one of the most important concerns of societies in today's world. On the one hand, countries are looking for revenue sources and, on the other hand, are trying to reduce income inequalities. In addition, due to the unequal distribution of income and the impact of migration contrary to the policies of societies, migration makes it difficult to achieve the desired economic growth. Therefore, considering the importance of the consequences of migration, the main purpose of this paper is to investigate the nonlinear effects of income inequality on brain drain in developing countries. Based on the findings of the study, the inequality in income distribution has a threshold effect on brain drain in developing countries. As long as inequality is at levels below 0.46, this variable has a negative and significant effect on brain drain, but after exceeding the threshold of 0.46 and being in a high inequality regime, the intensification of inequality increases the brain drain sharply. In other words, society tolerates a degree of inequality, but the intensification of inequality beyond the tolerable level of society causes the elites to migrate to developed countries, which are more equal, in search of a better life and proportionate to their capabilities.
Keywords
Brain drain
Inequality in income distribution
Developing Countries
Threshold panel model

Subjects

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Economic Research and Perspectives
Volume 22, Issue 2
Summer 2022
Pages 157-184