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selfʺ emerges when labor supply and savings decisions are made. The social welfare function is paternalistic: the rate of … show that the paternalistic solution does not necessarily imply forced savings for the myopics. This is because …
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option to save. -- Human capital formation ; Savings ; Intertemporal choice ; Prospect of migrating …
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option to save. -- Human capital formation ; Savings ; Intertemporal choice ; Prospect of migrating …
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In the model of Stark et al. (1997, 1998), the possibility of employment in a developed country raises the level of human capital acquired by workers in the developing country. We show that this result holds even when workers have the option to save
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divided into two sets: those who save by themselves to pay for the cost of their migration, and those who pool their savings … with the savings of another would-be migrant to pay for the cost. Saving jointly brings forward the timing of migration …
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