A B S T R A C T

The purpose of the research – to analyse how external (international) migration affects Azerbaijan’s human capital by identifying the main channels of loss and potential compensation mechanisms at the labor-market and demographic-structure levels.

The methodology of the research – a review and thematic analysis of academic literature; descriptive and structural-dynamic analysis of official statistical data on migration 

in Azerbaijan; comparative interpretation and visualization of results to identify the impact of external migration on human capital.

The practical importance of the research – the findings can support the design of measures to retain and attract back skilled workers, refine migration and education policies, and assess the risks of human-capital “drain” for non-resource-based growth.

The results of the research – the study identifies a phased pattern of external migration: periods of relative stabilization alternate with intensified out-migration, affecting the state of human capital. Strong age selectivity is observed, with flows concentrated in economically active groups; comparing the profiles of arrivals and departures indicates an elevated risk of losses in accumulated human capital. The paper substantiates compensation pathways: reintegration of returnees, retention incentives for skilled workers, selective attraction of competencies from abroad, and knowledge transfer through diaspora networks.

The originality and scientific novelty of the research – the paper provides an analysis of Azerbaijan’s external migration up to 2024 using a “loss-and-compensation balance” framework for human capital; it proposes a set of indicators of migration selectivity (age shares, destination concentration coefficients) and practice-oriented recommendations for a compensation policy package.

Keywords: external migration, human capital, brain drain, labour market, demographic structure, migration policy, diaspora.

http://doi.org/10.59610/bbu1.2026.1.12