Inter-jurisdictional labor mobility reduces the incentive for local public funding of education. This can be rectified by dividing the financial burden between the federal and local level, subsidizing local expenditures by inter-jurisdictional payments based on net migration flows. (C) 1997 Elsevier Science S.A.
Justman, M., & Thisse, J.-F. (1997). Implications of the mobility of skilled labor for local public funding of higher education. Economics Letters, 55(3), 409-412. https://doi.org/10.1016/S0165-1765(97)00084-0 (Original work published 1997)