New York Fed study finds Puerto Rico emigration has not led to 'brain drain'

Island's population has been falling for a decade due to emigration, but share of college graduates has increased as low-skilled workers are leaving in greater numbers

Author: Central Banking Newsdesk

Source: Central Banking | 08 Aug 2014

Categories: Economics

Topics: Federal Reserve Bank of New York, United States, Labour

Puerto Rico's population has been falling for nearly a decade, and the pace of decline has accelerated in recent years, largely due to net out-migration of the island's citizens, according to a Federal Reserve Bank of New York study.

The Causes and Consequences of Puerto Rico's Declining Population, by Jaison Abel and Richard Deitz, examines the factors contributing to this population loss and discusses the resulting challenges.

The study shows that although the outflow of people has quickened the pace of population aging, it has not necessarily led to a ‘brain drain'.

"The share of residents with a college degree has increased slightly in recent years, in part because people without college degrees have been leaving in higher numbers," the study notes.

Abel and Deitz also call for measures to shore up Puerto Rico's economy, including programmes that expand job opportunities for lower-skilled workers.

New York Fed study finds Puerto Rico emigration has not led to 'brain drain'