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The aggregate stock of human capital remaining in the country (non emigrant) is:
Under absence of emigration (m=0), the stock of human capital in the country of origin
is:
The relative domestic human capital remaining in the source country is:
The following questions are related to the variations of the aggregate domestic relative
human capital.
Variations with respect to the emigration rate and optimal emigration
Depending on the level of m, relative wages and gamma, the changes in the relative
human capital relative to gamma can be positive or negative. For values of m higher than
m*, the derivative is negative while positive below this value.
As in (Appendix I, Demo 1, Demo 2 and Demo 3) the maximal emigration rate among
other results is given by:
Again, is a function of relative wages and of .
The relative human capital varies in the same sense with respect to relative wages.
It also varies following the direction of as:
! )%!
(1)
(2)