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Human capital, investment and migration in an integrated Europe

Author: Burda, Michael C. ; Wyplosz, CharlesINSEAD Area: Economics and Political Science Series: Working Paper ; 91/52/EPS Publisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 10 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The short and longer-term regional conequences of migration for European aggregate supply are examined in a simple model in which human capital enters the production function externally. The planner chooses a reallocation of population across East and West that cannot be replicated by the market without taxes or subsidies. The market solution in this model with free migration is always associated with an efficiency loss, and might lead to the "Mezzogiorno syndrome" in the East
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The short and longer-term regional conequences of migration for European aggregate supply are examined in a simple model in which human capital enters the production function externally. The planner chooses a reallocation of population across East and West that cannot be replicated by the market without taxes or subsidies. The market solution in this model with free migration is always associated with an efficiency loss, and might lead to the "Mezzogiorno syndrome" in the East

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