Brain Drain in Non-Democratic Regimes

Empirical studies suggest that human-capital formation is one of the determinants of economic growth. However, there political aspects of human-capital formation are largely neglected in theoretical literature. In my paper, I am trying to incorporate possibility of <<brain drain>> into model of authoritarian regime, presented in the seminal book of Daron Acemoglu and James Robinson ``Economic origins of dictatorship and democracy.’’ In particular, I use a model with three income groups, where elites dictate their policy to other citizens, while poor and middle class, the latter is also considered to be educated and has a non-negative impact on income of all citizens, can undertake a revolution. Besides that, educated group can also choose to migrate. Presented model, unlike already existing, reflects very well such events as Huguenot Exodus from France in 1685, and Expulsion of Jews from Spain in 1492. Also, I was able to show, that <<brain drain>>, as a result of more redistributive policy, rather than the ideal policy of elites, is more likely to happen in societies, where inequality between poor and rich is larger.