TY  - RPRT
        AU  - Poutvaara, Panu
        TI  - On Human Capital Formation with Exit Options: Comment and New Results
        PY  - 2005/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1903
        UR  - https://www.iza.org/publications/dp1903
        AB  - 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 technology.
        KW  - migration
KW  - human capital formation
KW  - economic volatility
        ER  -