Abstract
The aim of this research is to explore the effect of a lower return on education in peripheral regions of a country compared to core regions on the decision of individuals in each region to acquire human capital by advancing their education. In addition, the study examines how these decisions may endogenously increase the income gap between the core region and the peripheral region. We first build a theoretical model that explains the individual's decisions regarding the acquisition of human capital using different production functions in each region. Thereafter, we conduct a simulation, using data from Israel's Central Bureau of Statistics, to evaluate the main parameters of the model.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
