Arbeitspapier

Subsidizing education in the economic periphery: Another pitfall of regional policies?

A very prominent instrument of regional policy is to foster education and human capital for-mation in economically lagging regions. However, this type of regional policy might actually hurt instead of help the recipient areas. The reason is that individual geographical mobility increases with the personal skill level. Through education subsidies, particularly if targeted on relatively high skilled workers, individuals can cross some threshold level of qualification beyond which emigration pays off. Regional policies then result in a human capital flight harmful to individuals remaining in the economic periphery. This fatal result does not hold for policies that focus on the relatively low skilled.

Language
Englisch

Bibliographic citation
Series: cege Discussion Papers ; No. 17

Classification
Wirtschaft
Subject
Regional Policy
Education Subsidies
Human Capital
Labour Mobility
European Union

Event
Geistige Schöpfung
(who)
Suedekum, Jens
Event
Veröffentlichung
(who)
University of Göttingen, Center for European, Governance and Economic Development Research (cege)
(where)
Göttingen
(when)
2003

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Suedekum, Jens
  • University of Göttingen, Center for European, Governance and Economic Development Research (cege)

Time of origin

  • 2003

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