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Egger, Hartmut; Felbermayr, Gabriel (2007): Endogenous skill formation and the source country effects of international labor market integration. CESifo Working Paper, 2018
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With endogenous skills and given technology, labor market integration necessarily lowers welfare of the left-behind in a poor sending country, even if all agents face identical emigration probabilities. This is in sharp contrast to the case of exogenous skill supply.