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Optimal investment in human capital under migration uncertainty

Author

Listed:
  • Baran Siyahhan

    (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Hamed Ghoddusi

    (CAL POLY - California Polytechnic State University [San Luis Obispo])

Abstract

This paper develops a model of optimal education investment under uncertainty for an agent with an emigration option. We distinguish between local (country-specific) and global human capital and analyze the role of migration opportunities in human capital accumulation of different types. The analysis shows that human capital accumulation depends on the level of uncertainty and the transferability of human capital across countries. Allowing for human capital investment in the destination country and easier transferability of both local and global human capital exacerbate brain drain.

Suggested Citation

  • Baran Siyahhan & Hamed Ghoddusi, 2022. "Optimal investment in human capital under migration uncertainty," Post-Print hal-03396049, HAL.
    • Handle: RePEc:hal:journl:hal-03396049
    DOI: 10.1111/roie.12570
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    Cited by:

    1. Andy Prasetyo Wati & Sheerad Sahid, 2022. "Factors Influencing Parents’ Awareness of Children’ Education Investment: A Systematic Review," Sustainability, MDPI, vol. 14(14), pages 1-13, July.

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