Based on a welfare-maximization model of skilled migration where education generates a positive externality, this paper …, welfare, the optimal education subsidy (𝑠), and a combination of 𝑠 and (the optimal) 𝐵𝑇, when residents' (emigrants …') weight in the government's objective function is 1 (1 − 𝛽), with 𝛽 𝜖 [0,1]. I find that: i) education, welfare and 𝑠 …

Based on a welfare-maximization model of skilled migration where education generates a positive externality, this paper …, welfare, optimal education subsidy (s), and a combination of s and BT, when residents' (emigrants') weight in the government …'s objective function is 1 (1 - β), with β ε [0,1]. I find that: i) education, welfare and s are higher (lower) under an open than …

migration policy the welfare of all workers is higher than in the absence of this policy. -- migration ; human capital formation … capital. Yet a strictly positive probability of migration to a richer country, by raising both the level of human capital …, can enhance welfare and nudge the economy toward the social optimum. Indeed, under a well-controlled, restrictive …

. However, migration also changes relative wages, alters the distribution of skills and affects equality in the receiving …