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where is <strong>the</strong> total labor force in <strong>the</strong> economy.<br />

The human capital remaining in <strong>the</strong> source economy, in case of emigration under risk<br />

aversion is given by:<br />

Or:<br />

3.1. Changes in Optimal Human Capital<br />

The variations of <strong>the</strong> domestic human capital formation in relation to are<br />

considered also important to be taken into account. These variations are analyzed using<br />

<strong>the</strong> first and second derivatives of that are respectively given by (Appendix, Demo 2):<br />

Under <strong>the</strong> condition , <strong>the</strong> second derivative of is negative<br />

implying that is concave and that <strong>the</strong> maximum of is obtained through <strong>the</strong><br />

necessary and sufficient condition that is (Appendix I, Demo 3). This implies<br />

that <strong>the</strong> optimal value for <strong>the</strong> emigration rate is given by:<br />

! ))!<br />

(4)<br />

(5)

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