Skill Choice, Brain Drain, and Variety of Goods: Innovation in the Core Periphery Model

People judge whether they want to be high-skilled workers by considering the economic returns and effort required skill. This study considers two regions: an advanced industrial region, where increase variety of goods through innovation, underdeveloped region innovation does not occur. Here, become high-skilled, regions origin potential abilities. Numerical simulations show that proportion reacts in inverted U-shape, as increases. When is small, ratio developed higher than regions; it increases, born both increase. The eventually declines; however, increases regions. As decreases