To what extent do public goods, rather than just income differentials, drive this exit of human capital? We analyze the migration decision of 1.25 million Italian expatriates using a discrete choice framework. We address the identification challenge-that high-public-good countries are typically richer-by controlling for individual-specific predicted earnings, isolating the amenity channel. We find that destination amenities are a decisive determinant of location choice. Using willingness-to-pay analysis, we quantify these valuations: emigrants would sacrifice 5.3% of income for a one standard deviation larger co-ethnic network, and require a 3.3% income premium to accept a one standard deviation increase in homicide rates. These findings suggest that for positively selected migrants, the quality of public goods acts as a critical retention mechanism, offering policymakers a lever beyond wage subsidies to mitigate brain drain.
