Working Paper
Integration, Mobility, and Human Capital Formation
Alexander Haupt, Silke Uebelmesser
CESifo, Munich, 2010
CESifo Working Paper No. 3190
CESifo, Munich, 2010
CESifo Working Paper No. 3190
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.
CESifo Category
Labour Markets
Labour Markets
Keywords: human capital, migration, labour market integration, agglomeration
JEL Classification: F220,J240,J610,R230