This paper analyses the wage premia associated with workers' occupational use of foreign languages in Germany. After eliminating time-invariant unobserved heterogeneity and other confounding factors, sizable returns of about 10 percent to applying fluent English skills are found. Returns to...

An increasing literature encourages the use of selective immigration policies as a tool to promote incentives to education. It is argued that, since not everybody is allowed to migrate, under these policies a poor country may well turn out with more human capital than in autarchy. The implicit...

This paper aims at explaining why countries with comparable levels of education still experience notable differences in terms of R&D and innovation. High-skilled migration, ultimately linked to differences in R&D costs, might be responsible for the persistence of such a gap. In fact, in a model...

In this paper we apply two statistical models to the measurement of polarization to Israeli income data over the past decade in order to empirically detect income classes as sub-populations of incomes concentrated around an optimal number of poles. The statistical models compared are a...

Increasing labor migration and simultaneous aging of societies are two important demographic developments many poor countries face. Elderly people who are left behind may experience a decrease in welfare when their children migrate. This paper investigates the e ect of migration on various...

We develop a theoretical model of human skill formation and emigration. Additionally to existing brain drain models, we partly endogenize the heterogeneity of the individuals, by introducing aspirations. Emigration of an individual will result in a migration experience, which increases the...

A key problem in the literature on the economics of migration is how emigration of an individual affects households left behind. Answers to this question must confront a problem I refer to as invisible sample selection: when entire households migrate, no information about them remains in their...

This paper provides compelling evidence that equity market liberalization, the most efficient way to smooth financial market frictions such as credit constraints, can alleviate persistent cross-dynastic income inequality through increasing the accumulation of human capital. We examine the impact...

FDI is seen widely as a vital source of investment, technology transfer, and growth. The factors that attract FDI have been a longstanding source of debate. The authors present a comprehensive assessment of the accumulated evidence on one factor, the success of economic growth in attracting FDI....