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Human capital as a factor of growth and employment at the regional level. The case of Spain

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  • Angel de la Fuente

    ()

  • Rafael Domenech
  • Juan Francisco Jimeno

Abstract

We use statistical techniques to quantify the effects of school attainment on individual wages, participation rates and employment probabilities in Spain, and to measure the contribution of education to labour productivity at the regional level. These estimates are then combined with data on private and public expenditure on education and with information on taxes and social benefits to construct measures of the private and social returns to schooling, to explore the effects of public policies on private incentives to invest in human capital, and to analyse the long-term effects of schooling on public finances. The results are used, together with estimates of the returns to alternative assets, to draw some tentative conclusions regarding the adequacy of the aggregate investment patterns observed in the regions of Spain, and to identify changes in the design of national and EU cohesion and growth policies that may help enhance their effectiveness.

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Bibliographic Info

Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 610.04.

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Length: 141
Date of creation: 15 Nov 2003
Date of revision:
Handle: RePEc:aub:autbar:610.04

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Keywords: human capital; growth; employment; returns to schooling;

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References

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  1. Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
  2. Philip Trostel & Ian Walker, 2006. "Education and Work," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 377-399.
  3. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  5. Mario Padula & Luigi Pistaferri, 2001. "Education, Employment and Wage Risk," CSEF Working Papers 67, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  6. de la Fuente, Angel & Doménech, Rafael, 2002. "Educational Attainment in the OECD, 1960-95," CEPR Discussion Papers 3390, C.E.P.R. Discussion Papers.
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Citations

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Cited by:
  1. Federico Cingano & Piero Cipollone, 2009. "The private and social return to schooling in Italy," Questioni di Economia e Finanza (Occasional Papers) 53, Bank of Italy, Economic Research and International Relations Area.
  2. Alejandro Esteller & Albert Solé, 2005. "Does decentralization improve the efficiency in the allocation of public investment? Evidence from Spain," Working Papers 2005/5, Institut d'Economia de Barcelona (IEB).
  3. Aurora A. C. Teixeira, 2004. "Measuring aggregate human capital in Portugal. An update up to 2001," FEP Working Papers 152, Universidade do Porto, Faculdade de Economia do Porto.
  4. Ángel de la Fuente & Juan F. Jimeno, 2005. "The private and fiscal returns to schooling and the effect of public policies on private incentives to invest in education: a general framework and some results for the EU," Banco de Espa�a Working Papers 0509, Banco de Espa�a.
  5. Concetta, MENDOLICCHIO, 2005. "Gender and private returns to education : a cross-European analysis," Discussion Papers (ECON - Département des Sciences Economiques) 2005056, Université catholique de Louvain, Département des Sciences Economiques.
  6. Angel de la Fuente, 2005. "Los mecanismos de cohesi? territorial en Espa?: un an?sis y algunas propuestas," UFAE and IAE Working Papers 644.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  7. Manuel Hidalgo Pérez & Walter García-Fontes, 2009. "Estimating Human Capital Externalities:The Case of Spanish Regions," Working Papers 09.17, Universidad Pablo de Olavide, Department of Economics.
  8. Michael Landesmann & Sebastian Leitner & Robert Stehrer & Terry Ward, 2009. "Skills and Industrial Competitiveness," wiiw Research Reports 356, The Vienna Institute for International Economic Studies, wiiw.
  9. Rosa Sanchis-Guarner & Enrique Lopez-Bazo, 2006. "Are Skilled Workers More Attracted to Economic Agglomerations?," ERSA conference papers ersa06p120, European Regional Science Association.
  10. Inés P. Murillo Huertas & Francisco Pedraja Chaparro, 2009. "¿Es rentable para el sector público invertir en educación?," Hacienda Pública Española, IEF, vol. 188(1), pages 9-29, March.
  11. Angel de la Fuente, . "Los mecanismos de cohesión territorial en España: un análisis y algunas propuestas," Studies on the Spanish Economy 200, FEDEA.
  12. Ciccone, Antonio & Garcia-Fontes, Walter, 2009. "The quality of the Catalan and Spanish education systems: A perspective from PISA," IESE Research Papers D/810, IESE Business School.

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