On human capital formation with exit options : comment and new results

@inproceedings{Poutvaara2005OnHC,
  title={On human capital formation with exit options : comment and new results},
  author={Panu Poutvaara},
  year={2005}
}
On Human Capital Formation with Exit Options: Comment and New Results 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… CONTINUE READING

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