We explore the implications of migrants' self-selection for the determination of immigration policy in a simple model where incentives and resources to migrate vary with skills. We show how self-selection determines the response of potential migrants to immigration policy changes, which is...

In this paper, we formalize the view that economic development requires high rates of productive entrepreneurship, and this requires an efficient matching between entrepreneurial talent and production technologies. We first explore the role of financial development in promoting such efficient...