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Smart Cafe Cities: Testing Human Capital Externalities in the Boston Metropolitan Area

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Author Info
Shihe Fu

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Abstract

Existing studies have explored either only one or two of the mechanisms that human capital externalities percolate at only macrogeographic levels. This paper uses the 1990 Massachusetts Census data and tests four mechanisms at the microgeographic levels in the Boston metropolitan area labor market. We propose that individual workers can learn from their occupational and industrial peers in the same local labor market through four channels: depth of human capital stock, Marshallian labor market externalities, Jacobs labor market externalities, and thickness of the local labor market. We find that all types of human capital externalities are significant across Census blocks. Different types of externalities attenuate at different speeds over distances. For example, the effect of human capital depth decays rapidly beyond three miles away from block centroid. We conclude that knowledge spillovers are very localized within microgeographic scope in cities that we call Smart Café Cities.

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File URL: http://webserver01.ces.census.gov/index.php/ces/1.00/cespapers?down_key=101734
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 05-24.

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Length: 45 pages
Date of creation: Oct 2005
Date of revision:
Handle: RePEc:cen:wpaper:05-24

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Web page: http://www.ces.census.gov

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Related research
Keywords: Human capital externalities Labor market agglomeration Hedonic wage model Marshallian externalities Jacobs externalities Spatial attenation

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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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. Richard Arnott & Elizaveta Shevyakhova, 2007. "Tenancy Rent Control and Credible Commitment in Maintenance," Boston College Working Papers in Economics 661, Boston College Department of Economics. [Downloadable!]
  2. Halfdanarson, Benedikt & Heuermann, Daniel F. & Suedekum, Jens, 2008. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," IZA Discussion Papers 3493, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Richard Arnott & John Rowse, 2007. "Downtown Parking in Auto City," Boston College Working Papers in Economics 665, Boston College Department of Economics. [Downloadable!]
  4. Richard Arnott, 2007. "Congestion Tolling with Agglomeration Externalities," Boston College Working Papers in Economics 660, Boston College Department of Economics. [Downloadable!]
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