CPRELL Office Project

Kalinangan Research Journal

Volume no. 17 | 2012/06
Issue no. 1

Title
The Effects of Labor Migration on Human and Physical Capital in an Overlapping Generations (OLG) Economy: A Theoretical Study
Author
Ma. Lea Rosales – San Gabriel, MS, Ph.D. (c)
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Abstract
International labor migration is a central component of the integrated world economy and is one of the most important issues in international economic relations. This study employed the tools of mathematical analysis and economic modeling to derive an economic model that will examine the factors and dynamics of labor migration, and ultimately show the impact of labor migration on human capital and physical capital formation. Similar to the study of Stark, Helmenstein, and Prskawetz (1998), the study shows that there is an increase in human capital formation. There is also a positive effect on the capital-labor ratio given a positive probability of employment abroad.
Keywords
international labor migration, overlapping generations model, human capital, physical capital, utility maximization
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