Differential Migration Prospects, Skill Formation, and Welfare

Oded Stark and Roman Zakharenko

No 119111, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: “engineering,” which exerts a positive externality on total factor productivity, and “law,” which does not. The paper shows that a marginal prospect of migration by engineers increases human capital accumulation of both types of workers (engineers and lawyers), and also the number of engineers who remain in the country. These two effects are socially desirable, since they move the economy from the (inefficient) free-market equilibrium towards the social optimum. The paper also shows that if the externality effect of engineering is sufficiently powerful, everyone will be better off as a consequence of the said prospect of migration, including the engineers who lose the migration “lottery,” and even the individuals who practice law.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Pages: 24
Date: 2011-12
New Economics Papers: this item is included in nep-hrm and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/119111/files/DP160.pdf (application/pdf)

Related works:
Journal Article: Differential Migration Prospects, Skill Formation, and Welfare (2012)
Working Paper: Differential migration prospects, skill formation, and welfare (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ubzefd:119111

DOI: 10.22004/ag.econ.119111

Access Statistics for this paper

More papers in Discussion Papers from University of Bonn, Center for Development Research (ZEF) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().