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Employment and brain drain

2015.10.14

EMPLOYMENT

 

GDP - composition, by sector of origin:

agriculture: 1.6%

industry: 20.7%

services: 77.7%

 

Labor force - by occupation:

farming, forestry, and fishing: 0.7%

manufacturing, extraction, transportation, and crafts: 20.3%

managerial, professional, and technical: 37.3%

sales and office: 24.2%

other services: 17.6%

 

note: figures exclude the unemployed

(2009)

 

Unemployment rate:

6.2% (2014 est.)

7.4% (2013 est.)

 

country comparison to the world: 65

 

Population below poverty line:

15.1% (2010 est.)

 

Household income or consumption by percentage share:

lowest 10%: 2%

highest 10%: 30% (2007 est.)

 

MINIMUM PAID HOLIDAY

• There is no statutory minimum.

• It is left to the employers to offer paid vacation days as part of the compensation and benefits package.

• 98% of employers offer at least some paid leave to their employees;

• full-time employees earn between 6 and 20 vacation days at 86% of employers surveyed.

• About 96% of surveyed employers give their employees paid time off during public

holidays, typically 6 per year.

• Some employers offer no vacations at all (about 25% of all employees receive no paid vacation time or paid holidays).

 

Most American employers provide paid days off for national holidays, such as

• Christmas,

• New Years,

• Independence Day,

 

Permanent (Immigrant) Worker

• A permanent worker is an individual who is authorized to live and work permanently in the United States.

 

Students and Exchange Visitors

• Students and exchange visitors may, under certain circumstances, be allowed to work in the United States. They must obtain permission from an authorized official at their school. The authorized official is known as a Designed School Official (DSO) for students and the Responsible Officer (RO) for exchange visitors.

 

What is brain drain?

• The loss of skilled, intellectual and technical labour force through their movement to more favourable geographic, economic or professional environments.

• It can be simply defined as the mass emigration of technically skilled people from one country to another.

• Also called as „human capital flight”.

 

History of brain drain

• The term originated about 1960 - it was coined by the British Royal Society.

• Already before and during WWII many scientists, lawyers, intellectuals migrated all around the world.

• E.g. in 1960, many British scientists and intellectuals emigrated to the US for a better working climate.

 

PUSH FACTORS

• under employment (A situation in which a worker is employed, but not in the desired capacity, whether in terms of compensation, hours, or level of skill and experience. While not technically unemployed, the underemployed are often competing for available jobs.)

• low wage or salary

• political instability

• lack of research and other facilities (Microsoft, Apple, Google, IBM, Boeing, Coca Cola etc.)

• Education standards and living conditions are better than in many other countries.

 

ENCOURAGEMENT

In 2000 the US Congress announced it was raising the annual cap on the number of temporary work visas granted to highly skilled professionals under its H1B visa programme, from 115 000 to 195 000 per year until 2003

 

PULL FACTORS

• better economic prospects

• higher salary and income

• better standards of living

• better research facilities

• modern education system and better opportunity for higher qualifications

• prestige of foreign training

• intellectual freedom

• better working conditions and better employment opportunities

• relative political stability

• presence of a rich scientific and cultural tradition

• attraction of urban centres

• availability of experienced and supporting staff

• technological gap

• allocation of substantial funds for research

 

Interesting facts about labour force from India:

28% of IBM employees

34% of Microsoft employees

36% of NASA employees

38% of doctors in America

12% of scientists in America

 

Migrants from developing countries are generally more likely to stay in the host country than migrants from advanced countries.

E.g.

• 79% of 1990-91 doctoral recipients from India and 88% of those from China were still working in the United States in 1995.

• In contrast, only 11% of Koreans and 15% of Japanese who earned science and engineering (S&E) doctorates from US universities in 1990-91 were working in the United States in 1995.

OR

• While there are often media reports of successful Indian entrepreneurs in the United States who establish branches or even firms in India only a small number actually return;

• in 2000, it was estimated that some 1,500 highly qualified Indians returned from the United States, although more than 30 times that number depart each year.

 

SENDING COUNTRIES (LEDCs) – BRIGHT SIDE

• Benefits mostly depends on attracting back skilled emigrants and providing opportunities for them to use their new technological competencies.

• Returnees also can bring valuable management experience,

• entrepreneurial skills and

• access to global networks

• They may even bring venture capital. E.g. In Taipei half of all the companies emerging from the largest science park, Hsinchu, were started by returnees from the United States. In China returning overseas students started most Internet-based ventures.

 

HOW TO ATTRACT QUALIFIED LABOUR FORCE

• developing centres of excellence for scientific research

• framing the conditions for innovation and high tech entrepreneurship

• increasing the salaries of post-doctorates (UK)