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| Tekijä: | Eggert, W. Krieger, T. Meier, V. |
| Otsikko: | Education, unemployment and migration |
| Lehti: | Journal of Public Economics
2010 : JUN, VOL. 94:5-6, p. 354-362 |
| Asiasana: | unemployment insurance externalities endogenous variables brain drain decision making pay education migration |
| Kieli: | eng |
| Tiivistelmä: | This paper examines a two-region model where unemployment, education decisions and interregional migration are endogenous. The poorer region shows lower wages as well as higher unemployment rates, and people, who move to the richer region are disproportionally skilled. This brain drain from the poor to the rich region comes with stronger incentives of acquiring skills even for immobile workers. Regional shocks usually affect both regions symmetrically, and skill-biased technological change reduces the unskilled workers' wages. Both education and migration decisions are distorted by a similar unemployment compensation, justifying a corrective subsidization. |
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