HomeDLSU Business & Economics Reviewvol. 23 no. 2 (2014)

Human Capital and Savings in an OLG Economy with Migration Possibilities: A Theoretical Note

Lawrence B. Dacuycuy | Dickson A. Lim



In a theoretical study by Stark, Helmenstein, and Prskawetz (1998), the presence of migration possibilities may increase human capital formation. This note verifies the robustness of the said result by introducing savings as a choice variable in an overlapping generations model with migration possibilities. Results indicate that human capital formation will still increase provided that certain technical conditions are met.