Government Spending on Education and Labour Mobility
This paper sets up a simple two-country overlapping generations madel to explore the interplay between education, taxation, and labour mobility and to assess the impact of education policies on human capital formation and long-run welfare in both the sending and the receiving country. It emphasises the role of diminishing returns with respect to public spending on education in the welfare consequences of labour mobility. Emigration can improve the long-run welfare of the sending country when the elasticity of the education technology is low. Immigration augments the long-run level of human capital in the receiving country but can resuit in a level of long-run welfare lower than autarky.
|Date of creation:||01 Dec 2000|
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- George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
- Michel, Ph. & Pestieau, P. & Vidal, J. -P., 1998. "Labor migration and redistribution with alternative assimilation policies: The small economy case," Regional Science and Urban Economics, Elsevier, vol. 28(3), pages 363-377, May.
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- Barro, R.J., 1988.
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- Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
- Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
- Robert J. Barro, 1988. "Government Spending in a Simple Model of Endogenous Growth," NBER Working Papers 2588, National Bureau of Economic Research, Inc.
- D. Fiaschi, 1996. "Fiscal policies and growth," Working Papers 261, Dipartimento Scienze Economiche, Universita' di Bologna.
- Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
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