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

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  • Panu Poutvaara

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 shows that the exit option may reduce human capital formation with a quadratic production technology.
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Suggested Citation

  • Panu Poutvaara, 2008. "On human capital formation with exit options: comment and new results," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 679-684, July.
    • Handle: RePEc:spr:jopoec:v:21:y:2008:i:3:p:679-684
    DOI: 10.1007/s00148-006-0129-0
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    References listed on IDEAS

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    1. Eliakim Katz & Hillel Rapoport, 2005. "On human capital formation with exit options," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(2), pages 267-274, June.
    2. Panu Poutvaara, 2000. "Education, Mobility of Labour and Tax Competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(6), pages 699-719, December.
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    Cited by:

    1. Kancs, D’Artis & Kielyte, Julda, 2010. "Education in the East, Emigrating to the West?," European Review, Cambridge University Press, vol. 18(2), pages 133-154, May.
    2. Chand, Satish & Clemens, Michael A., 2023. "Human capital investment under exit options: Evidence from a natural quasi-experiment," Journal of Development Economics, Elsevier, vol. 163(C).
    3. Meir Russ & Bino Catas?s, 2014. "Editorial. Intellectual Capital and Management Control: Human Capital Valuation and other challenges," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(2), pages 5-21.
    4. Baran Siyahhan & Hamed Ghoddusi, 2022. "Optimal investment in human capital under migration uncertainty," Review of International Economics, Wiley Blackwell, vol. 30(2), pages 422-449, May.
    5. Heijdra, Ben J. & Ligthart, Jenny E., 2010. "The Transitional Dynamics Of Fiscal Policy In Small Open Economies," Macroeconomic Dynamics, Cambridge University Press, vol. 14(1), pages 1-28, February.
    6. repec:dau:papers:123456789/179 is not listed on IDEAS
    7. 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;European Society for Population Economics, vol. 24(4), pages 1359-1368, October.

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    More about this item

    Keywords

    Human capital formation; Migration; Economic volatility; F22; J24; I21;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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