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Human capital externalities

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  • Alexander Muravyev

Abstract

The paper tests for the existence of human capital externalities using a micro-level approach: the Mincerian wage regression augmented with the average level of education in cities. To solve identification problems arising from the endogeneity of average education, the study exploits a natural experiment provided by the process of economic transition: average education at the end of communism can be seen as exogenous in respect of wages prevailing after the start of transition. Our empirical results based on the RLMS data show that a 1 percentage point increase in the share of city residents with a university degree results in an increase of wages of city residents by about 1 percent. Copyright (c) 2008 The Author. Journal compilation (c) 2008 The European Bank for Reconstruction and Development.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 16 (2008)
Issue (Month): 3 (07)
Pages: 415-443

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Handle: RePEc:bla:etrans:v:16:y:2008:i:3:p:415-443

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Cited by:
  1. Muravyev, Alexander & Oshchepkov, Aleksey, 2013. "Minimum Wages, Unemployment and Informality: Evidence from Panel Data on Russian Regions," IZA Discussion Papers 7878, Institute for the Study of Labor (IZA).
  2. Hartmut Lehmann & Jonathan Wadsworth, 2011. "The Impact of Chernobyl on Health and Labour Market Performance," CEP Discussion Papers dp1052, Centre for Economic Performance, LSE.
  3. Seung Mo Choi, 2008. "How Large are Learning Externalities? Measurement by Calibration," Working Papers 2008-26, School of Economic Sciences, Washington State University.
  4. Karen Macours & Johan Swinnen, 2006. "Rural Poverty in Transition Countries," LICOS Discussion Papers 16906, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Other Operational Studies 13052, The World Bank.
  6. Hartmut Lehmann & Alexander Muravyev & Klaus Zimmermann, 2012. "The Ukrainian longitudinal monitoring survey: towards a better understanding of labor markets in transition," IZA Journal of Labor & Development, Springer, vol. 1(1), pages 1-15, December.
  7. Bratti, Massimiliano & Leombruni, Roberto, 2009. "Local Human Capital Externalities and Wages at the Firm Level: The Case of Italian Manufacturing," IZA Discussion Papers 4613, Institute for the Study of Labor (IZA).
  8. Macours, Karen & Swinnen, Johan F.M., 2008. "Rural-Urban Poverty Differences in Transition Countries," World Development, Elsevier, vol. 36(11), pages 2170-2187, November.
  9. Filiztekin, Alpay, 2011. "Social returns to education in a developing country," MPRA Paper 35124, University Library of Munich, Germany.
  10. H. Lehmann & A. Muravyev, 2010. "Labor market institutions and labor market performance: what can we learn from transition countries?," Working Papers 714, Dipartimento Scienze Economiche, Universita' di Bologna.

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