This paper was updated in March 2015.
Developing countries can lose part of their investment in training skilled workers who later emigrate. One innovative response is for migrants’ destination countries to help finance skilled emigrants’ training ex ante—linking skill creation and skill mobility. We describe one such project, the Australia-Pacific Technical College (APTC), which has financed vocational training in five Pacific island developing countries for employment both at home and abroad—including employment in Australia. The APTC has attained its goal of skill creation, but not its goal of skill mobility. We offer explanations for this result and lessons for future policy innovation.
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