Population sorting and human capital accumulation

Abstract

Abstract This article analyses the effect of population sorting on economic growth. The analysis is performed in a two-region growth model with endogenous fertility, in which public knowledge spillovers from the more advanced core amplify the productivity of investment in children’s human capital in the periphery. I show how migration affects the inter-temporal evolution of human capital in each of the regions and the economy as a whole. I discuss how public policy interventions can help increase the per-capita human capital levels, if free uncontrolled migration leads to a reduction in human capital accumulation. I also analyse how migration and public policy interventions may affect population growth.