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In this paper, we analyse the geographical distribution of skills and the human capital content of migration flows between Swedish local labour markets. The study is based on detailed longitudinal population register data. During the last three decades, we find a distinct pattern of skill divergence across regions. The uneven distribution of human capital is reinforced by the mobility of the highly educated population. The pattern of skill divergence coincides with declining or even reversed income convergence across Swedish regions. The skilled regions become both more skilled and richer, while the less skilled regions lag behind. This development has potentially important implications for both regional and national economic policy.