Country Risks and Brain Drain: The Emigration Potential of Japanese Skilled Workers

Abstract

This study assesses the brain drain potentials in Japan and the factors shaping Japanese skilled workers’ interest in emigrating to other countries. The total number of Japanese citizens who live overseas with permanent residency status reached a record high of 513,750 in 2018. While most existing research attributes Japanese emigration to the pursuit of a better lifestyle, recent qualitative studies point out the emerging sense of country risks as significant drivers. We explore Japan’s brain-drain potentials with a focus on such risk factors. Specifically, based on our original survey, we examine what types of Japanese skilled workers are interested in emigration and how information about Japan’s country risks could affect their attitudes. We find that respondents with overseas experience and those in young age cohorts are particularly motivated to consider emigration. Another notable finding is that those who distrust the government and media are also more likely to think about leaving Japan than those who do not. Furthermore, exposure to information about long-term economic risk encourages them to consider living abroad in the future. These results suggest that the brain drain from Japan is likely to continue, and thus there is a need for long-term policy actions to tackle it.