This paper investigates the relationship between economy-wide policies and the performance of investment projects in education and health sectors. The model highlights the fact that the production of human capital requires an interaction of the demand for and supply of social services, both are...

We examine how low and high skilled internal emigration causally affect investments in human capital at origin. We provide theoretical and empirical evidence of a disincentive mechanism through which individuals refrain from education should low skilled emigration prove a viable alternative. Our...

When productivity is fostered by an individual's own human capital as well as by the economy-wide average level of human capital, individuals under-invest in human capital. The provision of subsidies for the formation of human capital, conditional on the subsidy being self-financed by tax...