Skill Choice, Brain Drain, and Variety of Goods: Innovation in the Core-Periphery Model

I-Chun Chen and Tomoru Hiramatsu
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I-Chun Chen: Kyoto University of Foreign Studies, Japan
Tomoru Hiramatsu: Kwansei Gakuin University, Japan

Migration Letters, 2022, vol. 19, issue 1, 55-66

Abstract: People judge whether they want to be high-skilled workers by considering the economic returns and the effort required to skill. This study considers two regions: an advanced industrial region, where high-skilled workers increase the variety of goods through innovation, and an underdeveloped region where innovation does not occur. Here, workers become high-skilled, considering regions of origin and potential abilities. Numerical simulations show that the proportion of high-skilled workers reacts in an inverted U-shape, as the variety of goods increases. When the variety of goods is small, the ratio of high-skilled workers in the developed regions is higher than that in the underdeveloped regions; as it increases, the proportion of high-skilled workers born in both regions increase. The proportion of high-skilled workers born in developed regions eventually declines; however, it increases in the underdeveloped regions. As the variety of goods increases, the proportion of high-skilled workers decreases in the underdeveloped regions.

Keywords: Skill choice; brain drain, innovation, variety of goods; core-periphery model (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:mig:journl:v:19:y:2022:i:1:p:55-66

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DOI: 10.33182/ml.v19i1.1187

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