Mais médicos program and human capital in Argentina : brain drain in the health sector?

Abstract

The Mais Médicos program (2013) tried to attract physicians to rural and peripheral areas of Brazil based on the international immigration of these professionals. Its creation generated widespread concern in the border areas of Argentina due to the potential brain drain (emigration of qualified professionals) in the health sector. In this paper we provide evidence on this topic. The identification strategy exploits the plausibly exogenous timing in the implementation of the program and the different levels of proximity of the Argentine provinces with respect to Brazil. The results suggest that, despite the widespread belief of a brain drain towards Brazil, the availability of physicians did not show a significant reduction, after the program, in the border areas. This is robust against multiple checks and placebos. From a territorial equity perspective, there is no evidence that the creation of the program has contributed to widening regional disparities in Argentina (i.e. fewer physicians in the poorest region).