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On human capital formation with exit options: comment and new results

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  • Panu Poutvaara

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Abstract

Katz and Rapoport (2005) conclude that with linear production technology and the possibility of unilateral migration, region-specific shocks may increase the average level of education. Previously, Poutvaara (2000) derived a corresponding result with Cobb-Douglas technology and migration which may go in both directions. This paper extends the analysis to all strictly concave production functions, and shows how the effect of the region-specific shocks depends on the shape of the production function. Also, the paper establishes when the presence of exit option increases and when it reduces investment in education. The results are robust to allowing for migration costs.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 21 (2008)
Issue (Month): 3 (July)
Pages: 679-684

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Handle: RePEc:spr:jopoec:v:21:y:2008:i:3:p:679-684

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Related research

Keywords: Human capital formation; Migration; Economic volatility; F22; J24; I21;

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References

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  1. Eliakim Katz & Hillel Rapoport, 2005. "On human capital formation with exit options," Journal of Population Economics, Springer, vol. 18(2), pages 267-274, 06.
  2. Poutvaara, Panu, 2000. "Education, mobility of labour and tax competition," Munich Reprints in Economics 19303, University of Munich, Department of Economics.
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Citations

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Cited by:
  1. Ben J. Heijdra & Jenny Ligthart, 2006. "The Transitional Dynamics of Fiscal Policy in Small Open Economies," CESifo Working Paper Series 1777, CESifo Group Munich.
  2. Kancs, D’Artis & Kielyte, Julda, 2010. "Education in the East, Emigrating to the West?," European Review, Cambridge University Press, vol. 18(02), pages 133-154, May.
  3. Xiaofeng Fan & Akira Yakita, 2011. "Brain drain and technological relationship between skilled and unskilled labor: brain gain or brain loss?," Journal of Population Economics, Springer, vol. 24(4), pages 1359-1368, October.
  4. Koessler, Frédéric & Forges, Françoise, 2008. "Long persuasion games," Economics Papers from University Paris Dauphine 123456789/179, Paris Dauphine University.

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