In this paper we develop a neoclassical growth model that aggregates different types of labor skills from strict complementarity to perfect substitution. After having derived general balanced growth conditions and developed explicit growth paths for capital and aggregate labor force, the model serves to qualitatively study the effect of brain drain on income and wages of the source country.
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Paper provided by Bielefeld University, Institute of Mathematical Economics in its series Working Papers with number
380.
Find related papers by 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 J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
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