The Effect of Emigration on Human Capital Formation

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Abstract
This paper focuses on a possible effect of emigration on human capital formation. Emigration to a high return to skills country provides an incentive to investment in human capital. The level of human capital formation in the sending country can therefore be positively correlated with the probability of emigration. We also provide an example borrowed from Galor and Stark (1994), in which emigration can lead the sending country out of the underdevelopment trap.
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