Question

What justifies the investment that people make when they migrate for employment?

Options

• The depreciation of human capital with use

• The higher earnings that migration brings

• The separability of human capital from its owner

• The tradability of human capital in foreign markets

Answer 1

Migration involves real costs—transport, living, and psychic costs—but people undertake it because the higher salaries and earnings at the destination justify the investment. The expectation of enhanced earnings makes migration a human capital investment.