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Case Title:

Brain Drain- A Threat to German Economy?

Publication Year : 2010

Authors: B Gopal, S Raghuraman and S Chaganty

Industry: General Business


Case Code: GBE0081IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Germany has been facing the issue of brain drain since the 1940s. The low wages provided for workers, high taxes and tight job market are the factors which led to the exodus of Germans. In addition, its citizens are disappointed with the stifling bureaucracy of the country. Germans are being attracted by fewer taxes in Switzerland, more salary and opportunities for growth in the United States and a high level of training being provided in Austria. Most of the German expatriates are engineers, doctors and professionally trained young talents. The flight of these skilled professionals is a great loss for the German economy and the loss of unfilled jobs has amounted to $26.8 million. It has also led to a shortage of trained professionals in various fields. The German government initiated several measures to stem a further exodus of its resources. It has also planned to lower taxes and increase wages, and ease work restrictions on immigrants to make Germany an attractive destination for foreign professionals.

Pedagogical Objectives:

  • To the reasons for the emigration of people from Germany.
  • To the impact of brain drain on the German economy.
  • To the impact of the exodus of skilled professionals on various sectors.
  • To the measures initiated by the German government to retain skilled resources and also attract skills from other countries..

Keywords : Germany, Brain drain, Emigration, Immigrants, Skilled workers, Professionals, Unemployment, Bureaucracy, Growth opportunities, High wages, Low tax, Patents per-capita, Economy, Engineers, Work permit

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