Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327663 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 12053
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
I investigate how taxing immigrants and redistributing the collected funds as educational subsidies influence human capital accumulation and growth in the source economy. The analysis is performed in a two-country growth model with endogenous fertility, in which public knowledge spillovers from the more advanced destination economy amplify the productivity of investment in children's education in the sending country. I demonstrate that, while in the short run, the source economy accumulates more human capital if the subsidies are provided domestically, if the spillover effect is strong enough, in the long run, it can accumulate more human capital if education is subsidized in the destination country.
Subjects: 
migration
child education
fertility
human capital
growth
brain drain
brain dilution tax
JEL: 
D30
F22
J10
J13
J24
O15
O40
Document Type: 
Working Paper
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