Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46533 
Year of Publication: 
2010
Series/Report no.: 
CESifo Working Paper No. 3190
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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.
Subjects: 
human capital
migration
labour market integration
agglomeration
JEL: 
F22
J24
J61
R23
Document Type: 
Working Paper
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