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Integration, Mobility, and Human Capital Formation

Alexander Haupt () and Silke Uebelmesser ()

No 3190, CESifo Working Paper Series from CESifo

Abstract: In this note, we show that labour market integration can be a double-edged sword. In the presence of local human capital externalities, integration and the ensuing agglomeration of skilled labour can cause a decline in human capital and the total wage sum (net of education costs). In particular, integration depresses the incentives for some talented but immobile individuals to become skilled.

Keywords: human capital; migration; labour market integration; agglomeration (search for similar items in EconPapers)
JEL-codes: F22 J24 J61 R23 (search for similar items in EconPapers)
Date: 2010
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