Brain drain or brain gain? Technology diffusion and learning on-the-job

► This paper studies the diffusion of managerial knowledge across countries. ► Knowledge transfer requires managers to provide on-the-job training to workers. ► High knowledge managers provide more and better training to their workers. ► High knowledge managers choose to employ workers in more developed countries where knowledge is more valuable. ► Globalization precipitates a brain drain that magnifies cross-country knowledge differences.