There is a growing perception among Canadians that the country is losing its best and brightest workers to the United States. Does the evidence support the brain drain theory?
Are We Losing Our Minds? Trends, Determinants and the Role of Taxation in Brain Drain to the United States
Are We Losing Our Minds? Trends, Determinants and the Role of Taxation in Brain Drain to the United States
Business and Household Indicators
Canadian Economic Analysis
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This comprehensive examination of brain drain looks at the recent trend in emigration—both permanent and non-permanent—to the United States and examines its significance in a broader economic context.
The report discusses several categories of skilled labour emigrants: engineers, computer scientists, physicians, nurses, professors, teachers, managerial personnel and social scientists. The number of permanent emigrants to the United States in these categories has basically remained stable in recent years. However, when non-permanent emigrants are included in the analysis, the picture changes dramatically. In 1997, they accounted for 94 per cent of the total outflow of skilled Canadians as compared to 77 percent in 1986.
Swift action by business and governments—to offer more attractive compensation and redress the tax wedge—is needed to stem the flow of valuable Canadian talent across the border.
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