Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/32305 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
ZEF Discussion Papers on Development Policy No. 71
Publisher: 
University of Bonn, Center for Development Research (ZEF), Bonn
Abstract: 
When productivity is fostered by both the individual's human capital and by the average level of human capital in the economy, individuals under-invest in human capital. A strictly positive probability of migration to a richer country, by raising both the level of human capital formed by optimizing individuals in the home country and the average level of human capital of non-migrants in the country, can enhance welfare and nudge the economy toward the social optimum. Under a well-controlled restrictive migration policy the welfare of all workers is higher than in the absence of this policy.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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