Migration, Child Education, Human Capital Accumulation, and a Brain Dilution Tax

Leonid V. Azarnert

No 11727, CESifo Working Paper Series from CESifo

Abstract: I study the effect of educational policy in the host economy on human capital accumulation and growth. The analysis is performed in a two-country growth model with endogenous fertility. I show that providing additional free educational services for immigrant children can increase the attractiveness of migration for less skilled individuals, which can outweigh the positive effect of this policy on the acquisition of human capital. In contrast, imposing taxes on immigrants in the host country reduces low-skilled immigration flows and has the potential to promote human capital accumulation if the resulting revenues are channeled into educational subsidies.

Keywords: migration; child education; fertility; human capital; growth; brain drain; brain dilution tax (search for similar items in EconPapers)
JEL-codes: D30 F22 J10 J13 J24 O15 O40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11727

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