This paper generalizes the analysis in Albert (1989) and Meckl (1990) of adjustment in a dynamic specific-factors model with endogenous capital stocks. Capital reallocation and accumulation are consequences of investment decisions and depreciation. The Investment process is analyzed under a...

We analyze public expectations about migrants’ provision of work effort as a driving force in the self-selection process of high-skilled migrants. We adopt and extend Piketty’s (1998) theoretical framework of social status and work out how country-specific public expectations affect the...