Corruption drives brain drain: Cross-country evidence from machine learning

Li, Qiang; An, Lian; Zhang, Ren

doi:10.1016/j.econmod.2023.106379

Cited by 7 publications

(3 citation statements)

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“…The test addresses the weakness of the traditional overidentification test, which relies on the "maintained (and untested) assumption that at least as many instruments are validly excluded from the model as there are endogenous regressors." Instead, this approach imposes assumptions on the degree of endogeneity of the regressor, foregoing the search for appropriate instrumental variables (Li et al, 2023).…”

Section: Models and Identificationmentioning

confidence: 99%

The brother's penalty: Boy preference and girls' health in rural China

Ye,

He,

et al. 2024

Health Economics

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This paper identifies the health penalty experienced by girls due to having a brother from endogenous sibling gender composition. We propose a girls‐to‐girls comparison strategy and rule out the confounding effect from the sibship size, birth interval, and birth order. Employing an instrumental variable approach and data from the Chinese Family Panel Studies, we find that girls with a brother are demonstrably shorter and report poorer health. This “brother's penalty” manifests even prenatally. Alternative explanations, such as birth order disadvantages, are carefully addressed and ruled out. The results hold even after excluding gender‐neutral ethnic minorities. This observed penalty is likely attributed to unequal resource allocation within families and potential parental neglect. This penalty is amplified in families with lower income and maternal education, implying resource constraints contribute to gender discrimination. Our findings highlight the importance of addressing intrafamily gender bias for ensuring equal opportunities and health outcomes.Clinical trial registration: Not applicable.

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Section: Models and Identificationmentioning

confidence: 99%

The brother's penalty: Boy preference and girls' health in rural China

Ye,

He,

et al. 2024

Health Economics

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“…The fact that the bearers of a society's moral capital are, to a large extent, also the bearers of its knowledge importantly shapes the processes of changes in moral capital in transitional societies. Dimant, Krieger and Meierrieks (2013) find that corruption pushes especially the migration of highly qualified workers, while Li and Zhang (2023) provide evidence of corruption as a driver of brain drain. In particular, when individuals who hold high moral norms change their moral environment -by migration or withdrawal to decision-making margins of the society -the productive and growth capacity of the economy is reduced not only by the loss of their moral capital but also by the loss of their knowledge (Li and Zhang, 2023;Marković and Mlađan, 2017).…”

Section: Dynamics Of the Loss Of Moral Capital In Transitionsmentioning

confidence: 99%

“…Dimant, Krieger and Meierrieks (2013) find that corruption pushes especially the migration of highly qualified workers, while Li and Zhang (2023) provide evidence of corruption as a driver of brain drain. In particular, when individuals who hold high moral norms change their moral environment -by migration or withdrawal to decision-making margins of the society -the productive and growth capacity of the economy is reduced not only by the loss of their moral capital but also by the loss of their knowledge (Li and Zhang, 2023;Marković and Mlađan, 2017). The economic decline triggered by this, and potentially in other ways, creates fertile ground for the development of another channel by which moral capital is lost.…”

Section: Dynamics Of the Loss Of Moral Capital In Transitionsmentioning

confidence: 99%

Moral Capital as an Element of Successful Transitions

Mladjan,

Marković

2023

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Moral capital is of great importance for both the economic and non-economic well-being of a society. However, moral capital is likely to erode during transitions, especially economic ones. The aim of the work is to determine the mechanisms through which the economic and political transition contributes to the erosion of moral capital, but also which measures can affect the rebuilding of moral capital. Analyzing individual cases, especially in Serbia, we draw general conclusions about the impact of economic and political transition on the decline of moral capital in transition countries. In this paper, we argue that the processes put in motion during economic and political transitions that lead to loss of moral capital are likely to result in a new equilibrium state. This state is characterized by the migration of the bearers of moral capital both to the margins of society and out of society and is highly unlikely to be reversed without a focused intervention by the state and society. We further argue that economic theory could both offer a justification for such an intervention and inform on the most effective way to conduct it. This is because the loss of moral capital can be seen as an instance of market failure in transition, one in which parts of the transitional elite are imposing a negative externality on the rest of society. Internalizing this externality -by making the culprits responsible could make the transition more successful; it would benefit justice and prosperity not only in the current economic transition but also in the future restructuring of the national economy and society. We argue that measures to restore moral capital ought to combine monetary transfers, improvement of institutional framework, and immaterial incentives with the aim of initiating processes that could benefit the whole society. Legally required monetary transfers should repair direct damage caused by corrupt actions, but should not benefit any particular individual, while immaterial incentives should be initiated both by the state and the wider society. We found out that activities of transition elites contribute to negative externalities, such as deterioration of moral capital, which results in less social and economic well-being. Additionally, we propose measures which can contribute to the internalization of these externalities.

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