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Human Capital and Market Access in the European Regions

In: Human Capital and Regional Development in Europe

Author

Listed:
  • Claude Diebolt

    (University of Strasbourg)

  • Ralph Hippe

    (Cedefop)

Abstract

In a recent contribution, Redding and Schott (J Dev Econ 72:515–541, 2003) add human capital to a two-sector NEG model, highlighting that remoteness represents a penalty that gives disincentives to invest in human capital. But is this hypothesis consistent with long-term evidence? This chapter tests the persistence of this effect at the regional level in a historical setting. The results show that market access has a significant positive influence on human capital in OLS, Tobit and IV regression models. Thus, the chapter confirms the “penalty of remoteness” hypothesis for Europe in the long run.

Suggested Citation

  • Claude Diebolt & Ralph Hippe, 2022. "Human Capital and Market Access in the European Regions," Frontiers in Economic History, in: Human Capital and Regional Development in Europe, chapter 0, pages 57-83, Springer.
    • Handle: RePEc:spr:frochp:978-3-030-90858-4_4
    DOI: 10.1007/978-3-030-90858-4_4
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