Integration, Mobility, and Human Capital Formation

15 Pages Posted: 7 Oct 2010

See all articles by Alexander Haupt

Alexander Haupt

University of Plymouth - Plymouth Business School; CESifo (Center for Economic Studies and Ifo Institute)

Silke Uebelmesser

University of Jena - School of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: September 30, 2010

Abstract

In this note, we show that labour market integration can be a double-edged sword. In the presence of local human capital externalities, integration and the ensuing agglomeration of skilled labour can cause a decline in human capital and the total wage sum (net of education costs). In particular, integration depresses the incentives for some talented but immobile individuals to become skilled.

Keywords: human capital, migration, labour market integration, agglomeration

JEL Classification: F22, J24, J61, R23

Suggested Citation

Haupt, Alexander and Uebelmesser, Silke, Integration, Mobility, and Human Capital Formation (September 30, 2010). CESifo Working Paper Series No. 3190. Available at SSRN: https://ssrn.com/abstract=1687576

Alexander Haupt

University of Plymouth - Plymouth Business School ( email )

Mast House
Plymouth, Devon PL4 8AA
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Silke Uebelmesser (Contact Author)

University of Jena - School of Economics and Business Administration ( email )

Carl-Zeiss-Str. 3
D-07743 Jena
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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