|Eggert, Wolfgang; Krieger, Tim; Meier, Volker (2010): Education, unemployment and migration. In: Journal of Public Economics, Vol. 94, No. 5-6: pp. 354-362|
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This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skill-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.
Economics > Chairs > Chair for Public Economics
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 09:00|
|Last Modified:||29. Apr 2016 09:17|
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Education, unemployment and migration. (deposited 15. Apr 2014 09:00)
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