The Pitfalls of Regional Education Policy
We analyze whether education subsidies to students in poor areas are an effective tool of regional policy. We show that this policy can miss its objectives and actually hurt instead of help the recipient area. The reason is that geographical mobility increases with the personal skill level. Education subsidies induce individuals to invest more heavily in human capital. At the end of the education period they might have crossed some threshold level of qualification beyond which emigration to the economic center pays off. Regional policies then result in a brain drain that is harmful to those remaining in the periphery. Education subsidies are a more promising policy instrument the lower is labor mobility and the better is access to financial markets. Moreover, policymakers can avoid the potential pitfalls of this policy by focusing subsidies on low-skilled workers.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 61 (2005)
Issue (Month): 3 (November)
|Contact details of provider:|| Web page: https://www.mohr.de/fa|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997.
"A brain gain with a brain drain,"
Elsevier, vol. 55(2), pages 227-234, August.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies.
- Mariassunta Giannetti, 2001. "Skill Complementarities and Migration Decisions," LABOUR, CEIS, vol. 15(1), pages 1-31, 03.
- Sjef Ederveen & Henri L . F. Groot & Richard Nahuis, 2006. "Fertile Soil for Structural Funds?A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy," Kyklos, Wiley Blackwell, vol. 59(1), pages 17-42, 02.
- Sjef Ederveen & Henri de Groot & Richard Nahuis, 2002. "Fertile soil for structural funds? A panel data analysis of the conditional effectiveness of European cohesion policy," CPB Discussion Paper 10, CPB Netherlands Bureau for Economic Policy Analysis.
- S. Ederveen & H.L.F. de Groot & R. Nahuis, 2003. "Fertile Soil for Structural Funds? A panel data analysis of the conditional effectiveness of European cohesion policy," Working Papers 03-14, Utrecht School of Economics.
- Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," CESifo Working Paper Series 1369, CESifo Group Munich.
- Poutvaara, Panu, 2006. "Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," IZA Discussion Papers 2478, Institute for the Study of Labor (IZA).
- Poutvaara, Panu, 2005. "Public education in an integrated Europe: Studying to migrate and teaching to stay?," ZEI Working Papers B 03-2005, University of Bonn, ZEI - Center for European Integration Studies.
- Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," NBER Working Papers 7564, National Bureau of Economic Research, Inc.
- Hunt, Jennifer, 2000. "Why Do People Still Live in East Germany?," IZA Discussion Papers 123, Institute for the Study of Labor (IZA).
- Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," Discussion Papers of DIW Berlin 201, DIW Berlin, German Institute for Economic Research.
- Hunt, Jennifer, 2000. "Why Do People Still Live In East Germany?," CEPR Discussion Papers 2431, C.E.P.R. Discussion Papers.
- Justman, Moshe & Thisse, Jacques-Francois, 1997. "Implications of the mobility of skilled labor for local public funding of higher education," Economics Letters, Elsevier, vol. 55(3), pages 409-412, September.
- Justman, M. & Thisse, J.-F., "undated". "Implications of the mobility of skilled labor for local public funding of higher education," CORE Discussion Papers RP 1296, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.
- Poutvaara, Panu, 2000. "Education, mobility of labour and tax competition," Munich Reprints in Economics 19303, University of Munich, Department of Economics.
- Möller, Joachim & Haas, Anette, 2002. "The agglomeration wage differential reconsidered - an investigation with German micro data 1984-1997," ERSA conference papers ersa02p327, European Regional Science Association.
- John Bound & Jeffrey Groen & Gabor Kezdi & Sarah Turner, 2001. "Trade in University Training: Cross-State Variation in the Production and Use of College-Educated Labor," NBER Working Papers 8555, National Bureau of Economic Research, Inc.
- Nicola D. Coniglio & Francesco Prota, 2008. "Human capital accumulation and migration in a peripheral EU region: the case of Basilicata," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 77-95, 03.
- Nicola D. Coniglio & Francesco Prota, 2003. "Human Capital Accumulation and Migration in a Peripheral EU Region: the Case of Basilicata," ERSA conference papers ersa03p157, European Regional Science Association.
- Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October. Full references (including those not matched with items on IDEAS)