Title: On human capital formation with exit options
Description: "Katz and Rapoport (2005) conclude that with linear production technology and the possibility of unilateral migration, region-specific shocks may increase the average level of education. Previously, Poutvaara (2000) derived a corresponding result with Cobb-Douglas technology and migration which may go in both directions. This paper shows that the exit option may reduce human capital formation with a quadratic production technology"--Forschungsinstitut zur Zukunft der Arbeit web site.
Subjects: Human capital, Production (Economic theory), Technology