International migration and human capital formation
We consider a model of international migration with heterogeneity in the skill level of workers which accounts for country-specific educational investment, unemployment expectations and return to the origin country. We prove that migrants invest less than natives in human capital formation because of return migration, so that migrants are more likely to be unemployed and to have flatter earnings profiles.
Volume (Year): 15 (2003)
Issue (Month): 10 ()
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