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A Dynamic Brain Drain in Peripheral Regions

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  • Miki Malul

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Abstract

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.

Suggested Citation

  • Miki Malul, 2012. "A Dynamic Brain Drain in Peripheral Regions," ERSA conference papers ersa12p230, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa12p230
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    5. Antonio Ciccone & Giovanni Peri, "undated". "Human Capital and Externalities in Cities," Working Papers 172, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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    13. Miki Malul & Raphael Bar-El, 2009. "The Gap between Free Market and Social Optimum in the Location Decision of Economic Activity," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2045-2059, September.
    14. Agell, Jonas & Lommerud, Kjell Erik, 1997. "Minimum wages and the incentives for skill formation," Journal of Public Economics, Elsevier, pages 25-40.
    15. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
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