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Human capital growth in a cross section of U.S. metropolitan areas

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Author Info
Christopher H. Wheeler

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Abstract

Growth of human capital, defined as the change in the fraction of a metropolitan area's labor force with a bachelor's degree, is typically viewed as generating a number of desirable outcomes, including economic growth. Yet, in spite of its importance, few empirical studies have explored why some economies accumulate more human capital than others. This paper attempts to do so using a sample of more than 200 metropolitan areas in the United States over the years 1980, 1990, and 2000. The results reveal two consistently significant correlates of human capital growth: population and the existing stock of college-educated labor. Given that population growth and human capital growth are both positively associated with education, these results suggest that the geographic distributions of population and human capital should have become more concentrated in recent decades. That is, larger, more-educated metropolitan areas should have exhibited the fastest rates of increase in both population and education and thus "pulled away" from smaller, less-educated metropolitan areas. The evidence largely supports this conclusion.

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Publisher Info
Article provided by Federal Reserve Bank of St. Louis in its journal Review.

Volume (Year): (2006)
Issue (Month): Mar ()
Pages: 113-132
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Handle: RePEc:fip:fedlrv:y:2006:i:mar:p:113-132:n:v.88no.2

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Keywords: Human capital

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References listed on IDEAS
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  10. Peri, Giovanni, 2002. "Young workers, learning, and agglomerations," Journal of Urban Economics, Elsevier, vol. 52(3), pages 582-607, November. [Downloadable!] (restricted)
  11. Jin Huem Park, 1994. "Estimation of Sheepskin Effects and Returns to Schooling Using he Old and the New CPS Measures of Educational Attainment," Working Papers 717, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  12. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March. [Downloadable!] (restricted)
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  13. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
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  14. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change And Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1055-1089, November. [Downloadable!] (restricted)
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  15. Enrico Moretti, 2003. "Human Capital Externalities in Cities," NBER Working Papers 9641, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Christopher H. Wheeler, 2007. "Human capital externalities and adult mortality in the U.S," Working Papers 2007-045, Federal Reserve Bank of St. Louis. [Downloadable!]
  2. Steven Poelhekke, 2006. "Do Amenities and Diversity Encourage City Growth? A Link Through Skilled Labor," Economics Working Papers ECO2006/10, European University Institute. [Downloadable!]
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