Menus Subscribe Search

Follow us


brain-drain

(ILLUSTRATION: EUGENP/SHUTTERSTOCK)

Talent Retention Subsidies

• May 02, 2013 • 3:29 PM

(ILLUSTRATION: EUGENP/SHUTTERSTOCK)

Why a proposal in Michigan to subsidize education for students who remain in-state after graduation won’t benefit anybody. It’s brain gain we should worry about, not brain drain.

Brain drain is a positive indicator. When an individual leaves her hometown, she benefits. The community did an excellent job educating its children. The best and brightest migrate. Michigan has decided to put a stop to all of this economic development:

Michigan is working to keep college graduates in the state, and new legislation seeks to slow the “brain drain” with an additional incentive: A tax credit for student loan payments.

“For me, it’s kind of a first step in talent retention,” said sponsoring state Rep. Andy Schor, D-Lansing, “We have some of the best colleges and universities in the world, but people get educated here and then leave for Chicago or San Francisco or some place else. We need to keep them in Michigan, and we need to keep them in our cities.”

House Bill 4182, up for testimony this week before the newly-formed Michigan Competitiveness Committee, would provide a state income tax credit to residents making student loan payments after graduating with a bachelor’s degree from a Michigan university or college.

House Bill 4182 treads on well-worn policy turf. States, counties, and cities all hatch the same tired schemes when college graduation season kicks off. The anxiety about brain drain is ubiquitous. The solutions offered don’t work. Rep. Andy Schor, D-Lansing, hasn’t done his homework.

What the bill does do is offer a tax break to recent college graduates burdened with student loans. That might inform a host of benefits. Talent retention isn’t likely one of them. Regardless, the subsidy is expensive. All the former students who would have stayed, law or no law, will cash in on the opportunity. Even if more people do stay, the return on investment will be lousy.

I’ll let you in on a dirty little secret. Michigan brain drain is a myth, a folktale. The state has a brain gain problem. No one wants to move to a Rust Belt hellhole. Ask Ann Arbor about its struggles to attract talent. Detroit has cast a pall over all of Michigan.

Schor should help out technology start-ups. Recent college graduates from any U.S. institution of higher learning who go to work for a small business would receive the student loan tax credit. What Michigan needs is a talent attraction subsidy, an incentive that works with the tendency of the young and college educated to relocate. Trying to root this demographic is both foolish and counterproductive.

Jim Russell
Jim Russell is a geographer studying the relationship between migration and economic development.

More From Jim Russell

A weekly roundup of the best of Pacific Standard and PSmag.com, delivered straight to your inbox.

Recent Posts

December 18 • 4:00 PM

How I Navigated Life as a Newly Sober Mom

Saying “no” to my kids was harder than saying “no” to alcohol. But for their sake and mine, I had to learn to put myself first sometimes.


December 18 • 2:00 PM

Women in Apocalyptic Fiction Shaving Their Armpits

Because our interest in realism apparently only goes so far.


December 18 • 12:00 PM

The Paradox of Choice, 10 Years Later

Paul Hiebert talks to psychologist Barry Schwartz about how modern trends—social media, FOMO, customer review sites—fit in with arguments he made a decade ago in his highly influential book, The Paradox of Choice: Why More Is Less.


December 18 • 10:00 AM

What It’s Like to Spend a Few Hours in the Church of Scientology

Wrestling with thetans, attempting to unlock a memory bank, and a personality test seemingly aimed at people with depression. This is Scientology’s “dissemination drill” for potential new members.


December 18 • 8:00 AM

Gendering #BlackLivesMatter: A Feminist Perspective

Black men are stereotyped as violent, while black women are rendered invisible. Here’s why the gendering of black lives matters.


December 18 • 7:06 AM

Apparently You Can Bring Your Religion to Work

New research says offices that encourage talk of religion actually make for happier workplaces.


December 18 • 6:00 AM

The Very Weak and Complicated Links Between Mental Illness and Gun Violence

Vanderbilt University’s Jonathan Metzl and Kenneth MacLeish address our anxieties and correct our assumptions.


December 18 • 4:00 AM

Should Movies Be Rated RD for Reckless Driving?

A new study finds a link between watching films featuring reckless driving and engaging in similar behavior years later.


December 17 • 4:00 PM

How to Run a Drug Dealing Network in Prison

People tend not to hear about the prison drug dealing operations that succeed. Substance.com asks a veteran of the game to explain his system.


December 17 • 2:00 PM

Gender Segregation of Toys Is on the Rise

Charting the use of “toys for boys” and “toys for girls” in American English.


December 17 • 12:41 PM

Why the College Football Playoff Is Terrible But Better Than Before

The sample size is still embarrassingly small, but at least there’s less room for the availability cascade.


December 17 • 11:06 AM

Canadian Kids Have a Serious Smoking Problem

Bootleg cigarette sales could be leading Canadian teens to more serious drugs, a recent study finds.


December 17 • 10:37 AM

A Public Lynching in Sproul Plaza

When photographs of lynching victims showed up on a hallowed site of democracy in action, a provocation was issued—but to whom, by whom, and why?


December 17 • 8:00 AM

What Was the Job?

This was the year the job broke, the year we accepted a re-interpretation of its fundamental bargain and bought in to the push to get us to all work for ourselves rather than each other.


December 17 • 6:00 AM

White Kids Will Be Kids

Even the “good” kids—bound for college, upwardly mobile—sometimes break the law. The difference? They don’t have much to fear. A professor of race and social movements reflects on her teenage years and faces some uncomfortable realities.



December 16 • 4:00 PM

How Fear of Occupy Wall Street Undermined the Red Cross’ Sandy Relief Effort

Red Cross responders say there was a ban on working with the widely praised Occupy Sandy relief group because it was seen as politically unpalatable.


December 16 • 3:30 PM

Murder! Mayhem! And That’s Just the Cartoons!

New research suggests deaths are common features of animated features aimed at children.


December 16 • 1:43 PM

In Tragedy, Empathy Still Dependent on Proximity

In spite of an increasingly connected world, in the face of adversity, a personal touch is most effective.


December 16 • 12:00 PM

The ‘New York Times’ Is Hooked on Drug du Jour Journalism

For the paper of record, addiction is always about this drug or that drug rather than the real causes.


December 16 • 10:00 AM

What Is the Point of Academic Books?

Ultimately, they’re meant to disseminate knowledge. But their narrow appeal makes them expensive to produce and harder to sell.


December 16 • 8:00 AM

Unjust and Unwell: The Racial Issues That Could Be Affecting Your Health Care

Physicians and medical students have the same problems with implicit bias as the rest of us.


December 16 • 6:00 AM

If You Get Confused Just Listen to the Music Play

Healing the brain with the Grateful Dead.


December 16 • 4:00 AM

Another Casualty of the Great Recession: Trust

Research from Britain finds people who were laid off from their jobs expressed lower levels of generalized trust.


December 15 • 4:00 PM

When Charter Schools Are Non-Profit in Name Only

Some charters pass along nearly all their money to for-profit companies hired to manage the schools. It’s an arrangement that’s raising eyebrows.


Follow us


Apparently You Can Bring Your Religion to Work

New research says offices that encourage talk of religion actually make for happier workplaces.

Canadian Kids Have a Serious Smoking Problem

Bootleg cigarette sales could be leading Canadian teens to more serious drugs, a recent study finds.

The Hidden Psychology of the Home Ref

That old myth of home field bias isn’t a myth at all; it’s a statistical fact.

A Word of Caution to the Holiday Deal-Makers

Repeat customers—with higher return rates and real bargain-hunting prowess—can have negative effects on a company’s net earnings.

Crowdfunding Works for Science

Scientists just need to put forth some effort.

The Big One

One in two United States senators and two in five House members who left office between 1998 and 2004 became lobbyists. November/December 2014

Copyright © 2014 by Pacific Standard and The Miller-McCune Center for Research, Media, and Public Policy. All Rights Reserved.