Abstract
A country’s endowment of human capital can affect its institutions through various channels. This raises the possibility that skilled emigration can leave its mark on a country’s institutional development. We combine recent datasets on emigrant stocks and institutional quality to explore the impacts of mobile human capital on home country’s institutional quality. Using geography-based instruments for emigrant human capital, we find that larger emigrant human capital stocks (as a share of domestic population) are associated with higher quality of political institutions, but lower quality of economics institutions.
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