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Human Capital and Wages: Evidence for External Effects from the UK Regions

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Author Info
Monastiriotis, Vassilis

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Abstract

A large panel of regional UK data is used to provide detailed estimates of the direct and external effects of education and labour market experience on wages. The results offer strong evidence in support of the predictions of the endogenous growth theory (Lucas, 1988), where the--spatial or sectoral--concentration of human capital is expected to generate increasing returns in the production process. The findings are stronger for labour market experience, while no supportive evidence is found for the case of years of schooling. Possibly, better data on the quality of educational qualifications could offer a better measurement of the external education effects. Copyright 2002 by Taylor and Francis Group

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 9 (2002)
Issue (Month): 13 (October)
Pages: 843-46
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Handle: RePEc:taf:apeclt:v:9:y:2002:i:13:p:843-46

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  1. Helena Marques & Hugh Metcalf, 2003. "Extending the EU Single Market Eastwards: Sectoral Trade and Real Wage Effects," Discussion Paper Series 2003_10, Department of Economics, Loughborough University, revised Oct 2003. [Downloadable!]
    Other versions:
  2. Helena Marques, 2004. "The skilled U-shaped Europe: is it really and on which side does it stand?," Discussion Paper Series 2004_06, Department of Economics, Loughborough University, revised Mar 2004. [Downloadable!]
    Other versions:
  3. Helena Marques & Hugh Metcalf, 2003. "Wage Gradients in an Enlarged EU," Discussion Paper Series 2003_13, Department of Economics, Loughborough University, revised Dec 2003. [Downloadable!]
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This page was last updated on 2009-11-8.

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