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On Human Capital Formation with Exit Options: Comment and New Results


  • Poutvaara, Panu

    () (University of Munich)


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.

Suggested Citation

  • Poutvaara, Panu, 2005. "On Human Capital Formation with Exit Options: Comment and New Results," IZA Discussion Papers 1903, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1903

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    References listed on IDEAS

    1. Eliakim Katz & Hillel Rapoport, 2005. "On human capital formation with exit options," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(2), pages 267-274, June.
    2. 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.
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    Cited by:

    1. Kancs, D’Artis & Kielyte, Julda, 2010. "Education in the East, Emigrating to the West?," European Review, Cambridge University Press, vol. 18(02), pages 133-154, May.
    2. Meir Russ & Bino Catasùs, 2014. "Editorial. Intellectual Capital and Management Control: Human Capital Valuation and other challenges," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(2), pages 5-21.
    3. repec:dau:papers:123456789/179 is not listed on IDEAS
    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;European Society for Population Economics, vol. 24(4), pages 1359-1368, October.

    More about this item


    migration; human capital formation; economic volatility;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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