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

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1648.

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Date of creation: 2006
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Handle: RePEc:ces:ceswps:_1648

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Keywords: human capital formation; migration; economic volatility;

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  1. Panu Poutvaara, 2000. "Education, Mobility of Labour and Tax Competition," International Tax and Public Finance, Springer, vol. 7(6), pages 699-719, December.
  2. Eliakim Katz & Hillel Rapoport, 2005. "On human capital formation with exit options," Journal of Population Economics, Springer, vol. 18(2), pages 267-274, 06.
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Cited by:
  1. Francoise Forges & Frédéric Koessler, 2006. "Long Persuasion Games," CESifo Working Paper Series 1669, CESifo Group Munich.
  2. Heijdra, Ben J. & Ligthart, Jenny E., 2010. "The Transitional Dynamics Of Fiscal Policy In Small Open Economies," Macroeconomic Dynamics, Cambridge University Press, Cambridge University Press, vol. 14(01), pages 1-28, February.
  3. d'Artis Kancs & Julda Kielyte, 2010. "Education in the East, Emigrating to the West?," EERI Research Paper Series EERI_RP_2010_01, Economics and Econometrics Research Institute (EERI), Brussels.
  4. 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.

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