A Dynamic Brain Drain in Peripheral Regions
The aim of this research is to explore the effect of a lower return on education in peripheral regions of a country compared to core regions on the decision of individuals in each region to acquire human capital by advancing their education. In addition, the study examines how these decisions may endogenously increase the income gap between the core region and the peripheral region. We first build a theoretical model that explains the individual's decisions regarding the acquisition of human capital using different production functions in each region. Thereafter, we conduct a simulation, using data from Israel's Central Bureau of Statistics, to evaluate the main parameters of the model.
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
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.:
- Ciccone, Antonio & Peri, Giovanni, 2000.
"Human Capital and Externalities in Cities,"
CEPR Discussion Papers
2599, C.E.P.R. Discussion Papers.
- Antonio Ciccone & Giovanni Peri, . "Human Capital and Externalities in Cities," Working Papers 172, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Antonio Ciccone & Giovanni Peri, 1999. "Human capital and externalities in cities," Economics Working Papers 494, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2000.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Antonio Ciccone & Robert E. Hall, 1993.
"Productivity and the Density of Economic Activity,"
NBER Working Papers
4313, National Bureau of Economic Research, Inc.
- Bar-El, Raphael & Felsenstein, Daniel, 1990. "Entrepreneurship and rural industrialization: Comparing urban and rural patterns of locational choice in Israel," World Development, Elsevier, vol. 18(2), pages 257-267, February.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Leslie S Stratton & James N. Wetzel, 2008. "Increasing Returns to Education and Progress towards a College Degree," Working Papers 0805, VCU School of Business, Department of Economics.
- Rauch James E., 1993.
"Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities,"
Journal of Urban Economics,
Elsevier, vol. 34(3), pages 380-400, November.
- James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc.
- Malul, Miki, 2009. "Older workers' employment in dynamic technology changes," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(5), pages 809-813, October.
- Glaeser, Edward L & Mare, David C, 2001.
"Cities and Skills,"
Journal of Labor Economics,
University of Chicago Press, vol. 19(2), pages 316-42, April.
- Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-50, August.
- Hanson, G.H., 1999.
"`Market Potential, Increasing Returns, and Geographic Concentration,"
439, Research Seminar in International Economics, University of Michigan.
- H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
- Gordon H. Hanson, 1998. "Market Potential, Increasing Returns, and Geographic Concentration," NBER Working Papers 6429, National Bureau of Economic Research, Inc.
- Agell, Jonas & Lommerud, Kjell Erik, 1997. "Minimum wages and the incentives for skill formation," Journal of Public Economics, Elsevier, vol. 64(1), pages 25-40, April.
- Malul Miki & Luski Israel, 2009. "The Optimal Policy Combination of the Minimum Wage and the Earned Income Tax Credit," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-24, November.
- Shindo, Yuko, 2010. "The effect of education subsidies on regional economic growth and disparities in China," Economic Modelling, Elsevier, vol. 27(5), pages 1061-1068, September.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p230. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.