The Interaction between Education, Skilled Migration, and Trade

The subject of this paper is the interaction between migration and human capital. These are both fields in which Curt Eaton has made important contributions – albeit under very different assumptions regarding information completeness and market structure.¹ Likewise, our central research question will be familiar to any of Curt’s students – that is, how do individuals respond to the institutions they face? Specifically, in this paper, the central question is, how do individuals adjust their education decisions to changes in skilled immigration in a small, open economy? Over the past decade, flows of skilled labour from developing to developed countries have increased