We draw a distinction between the social integration and economic assimilation of migrants, and study an interaction between the two. We define social integration as blending into the host countryś society, and economic assimilation as acquisition of human capital that is specific to the host...

We draw a distinction between the social integration and economic assimilation of migrants, and study an interaction between the two. We define social integration as blending into the host country’s society, and economic assimilation as acquisition of human capital that is specific to the host...

In this paper, we empirically test the role that religious and political institutions play in the accumulation of human capital. Using a new data set on literacy in colonial India, we find that Muslim literacy is negatively correlated with the proportion of Muslims in the district, although we...

Quite often, migrants appear to exert little effort to absorb the mainstream culture and to learn the language of their host society, even though the economic returns (increased productivity and enhanced earnings) to assimilation are high. We show that when interpersonal comparisons affect...

Recently, the EU Council adopted a new labour migration policy instrument - the EU Blue Cards (BC) - for attracting the highly skilled workers to the EU. The present paper examines the potential impacts, which BC may cause on less developed sending countries (LDC). Our results suggest that the...

We study the aggregate productivity effects of firm-level financial frictions. Credit constraints affect not only production decisions but also household-level schooling decisions. In turn, entrepreneurial schooling decisions impact firm-level productivities, whose cross-sectional distribution...

The paper assesses the global effects of brain drain on developing economies and quantifies the relative sizes of various static and dynamic impacts. By constructing a unified generic framework characterized by overlapping-generations dynamics and calibrated to real data, this study incorporates...

We extend the Lucas' 1988 model introducing two classes of agents with heterogeneous skills, discount factors and initial human capital endowments. We consider two regimes according to the planner's political constraints. In the first regime, that we call meritocracy, the planner faces...

We examine the channels through which a randomized early childhood intervention in Colombia led to significant gains in cognitive and socio-emotional skills among a sample of disadvantaged children. We estimate production functions for cognitive and socio-emotional skills as a function of...

This paper provides a novel explanation of “educated unemployment,” which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that “educated unemployment” is caused by the perspective of international migration, that is,...