“…Shocks that increase the expected utility of college graduates abroad (W i,h ) have a positive effect on human capital formation (H i ) and on the positive selection of emigrants (as reflected by the ratio of high-skilled to low-skilled emigration rates, ρ i ) (e.g., Abarcar and Theoharides, 2021, Khanna and Morales, 2017, Shrestha, 2017, Theoharides, 2018. Shocks that increase the expected utility of the less-educated abroad (W i,l ) have a negative effect on both variables (e.g., de Brauw and Giles, 2017, Kosack, 2021, Pan, 2017. This establishes the micro-foundations of the link between emigration rates and pre-migration human capital formation in a multi-destination framework.…”