INTERNATIONAL MIGRATION, ECONOMIC-POLICY AND HUMAN-CAPITAL ACCUMULATION - A SIMULATION STUDY

This paper examines the economic policy implications of international migration and human capital accumulation within a dynamic general equi librium model. Each country produces by means of physical and human ca pital of two types (skilled and unskilled labour). Along optimal growt h paths in a world of diverging population growth rates immigration ca n only be beneficial when the free rider effect (ie not paying for tra ining costs) exceeds the capital dilution effect of an increase in pop ulation growth. Under quite general conditions the optimal immigration rate is zero.