Hostname: page-component-586b7cd67f-t8hqh Total loading time: 0 Render date: 2024-11-28T03:24:19.021Z Has data issue: false hasContentIssue false
  • English
  • Français

Government Spending on Education and Labour Mobility

Published online by Cambridge University Press:  17 August 2016

Jean-Pierre Vidal
Jean-Pierre Vidal*
Affiliation:
GREQAM – Centre National de la Recherche Scientifique**
Get access

Summary

This paper sets up a simple two-country overlapping generations model to explore the interplay between education, taxation, and labour mobility and to assess the impact of education policies on human capital formation and long-run welfare in both the sending and the receiving country. It emphasises the role of diminishing returns with respect to public spending on education in the welfare consequences of labour mobility. Emigration can improve the long-run welfare of the sending country when the elasticity of the education technology is low. Immigration augments the long-run level of human capital in the receiving country but can result in a level of long-run welfare lower than autarky.

Résumé

Résumé

Cet article étudie les conséquences des politiques d’éducation et de taxation sur la mobilité du travail, la formation du capital humain et le bien-être dans un modèle à générations imbriquées à deux pays dans lesquels les technologies d’éducation sont caractérisées par des rendements décroissants par rapport aux dépenses publiques d’éducation. L’émigration amé liore à long terme le bien-être du pays d’origine si Pélasticit é de la technologie d’éducation par rapport aux dépenses publiques d’éducation est suffisamment faible. L’immigration augmente l’accumulation du capital humain à long terme dans le pays d’accueil mais peut conduire à un niveau de bien-être de long terme infél’autarcie.

Keywords

labour migrationeducationF22mobilité du travailcapital humainF22
Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 66 , Issue 4 , 2000 , pp. 373 - 389
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2000 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

I want to thank Pascal Belan, Roberto Cardarelli, Bertrand Crettez, Jayasri Dutta, Cecilia Garcia-Penalosa, and two anomymous referees of this review for helpful comments. This research has benefitted from the financial support of the European Commission under Training and Mobility of Researchers' grant #ERBFMB1CT961100. The usual disclaimer applies.

**

2 rue de la Charité, 13002 Marseille, France

References

Barro, R. J., (1990), “Government Spending in a Simple Model of Endogenous Growth”, Journal of Political Economy, 98 part II, pp. S103-S125.Google Scholar
Bhagwati, J. N. and Hamada, K., (1982), “Tax Policy in the Presence of Emigration”, Journal of Public Economics, 18, pp. 291–317.Google Scholar
de la Croix, D. and Michel, P., (2000), The Overlapping Generations Approach to Capital Accumulation, book in progress.Google Scholar
Frenkel, J. A. and Razin, A., (1996), Fiscal Policies and Growth in the World Economy, Third edition, The MIT Press.Google Scholar
Galor, O. and Stark, O., (1994), “Migration, Human Capital Formation and the Long-run Output”, Migration : a challenge for Europe, Siebert, (Ed.), J.C.B. Mohr, Tuebingen.Google Scholar
Glomm, G. and Ravikumar, B., (1992), “Public versus Private Investment in Human Capital : Endogenous Growth and Income Inequality”, Journal of Political Economy, 100, pp. 818–834.Google Scholar
Hámáláinen, S., (1997), “Asymmetric Attitude towards Emigration and Immigration’ mimeo”, University of Tampere, paper presented at the 1997 congress of the European Society for Population Economics.Google Scholar
Michel, P., Pestieau, P. and Vidal, J-P. (1998), “Labor Migration and Redistribution with Alternative Assimilation Policies : the Small Economy Case”, Regional Science and Urban Economics, 21, pp. 363–377.Google Scholar
Mirrlees, J. A., (1982), “Migration and Optimal Income Taxes”, Journal of Public Economics, 18, pp. 319–341.Google Scholar
Mountford, A., (1997), “Can a Brain Drain Be Good for Growth in the Source Economy?” Journal of Development Economics, 53, pp. 287–303.Google Scholar
Razin, A. and Sadka, E., (1995), Population Economics, The MIT Press.Google Scholar
Psacharopoulos, G., (1985), “Returns to Education : a Further International Update and Implications”, Journal of Human Resources, XX, pp. 583–604.Google Scholar
Vidal, J-P., (1998), “The Effect of Emigration on Human Capital Formation”, Journal of Population Economics, 11, pp. 589–600.Google Scholar