Human capital and savings in an OLG economy with migration possibilities: A theoretical note

College

Ramon V. Del Rosario College of Business

Department/Unit

Economics

Document Type

Article

Source Title

DLSU Business and Economics Review

Volume

23

Issue

2

First Page

132

Last Page

135

Publication Date

2-4-2014

Abstract

In a theoretical study by Stark, Helmenstein, and Prskawetz (1998), the presence of migration possibilities may increase human capital formation. This note verifies the robustness of the said result by introducing savings as a choice variable in an overlapping generations model with migration possibilities. Results indicate that human capital formation will still increase provided that certain technical conditions are met. © 2014 by De La Salle University, Manila, Philippines.

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Disciplines

Economics

Keywords

Human capital; Emigration and immigration; Saving and investment

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