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Empirical evidence on human capital spillovers

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  • Jeremy Rudd
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    Abstract

    This paper examines whether the average level of human capital in a region affects the earnings of an individual residing in that region in a manner that is external to the individual's own human capital. I find little evidence of an external effect of human capital, which suggests that human capital spillovers of the form postulated by the new growth literature are unlikely to matter much in practice.

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    Bibliographic Info

    Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2000-46.

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    Date of creation: 2000
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    Handle: RePEc:fip:fedgfe:2000-46

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    Related research

    Keywords: Human capital ; Education ; Income;

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    References

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    1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    2. Becker, G.S. & Murphy, K.M., 1991. "The Division of Labor, Coordination Costs, and Knowledge," University of Chicago - Economics Research Center 92-5, Chicago - Economics Research Center.
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    8. Robert M. Solow, 1994. "Perspectives on Growth Theory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter.
    9. Daron Acemoglu & Joshua Angrist, 2001. "How Large are Human-Capital Externalities? Evidence from Compulsory-Schooling Laws," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 9-74 National Bureau of Economic Research, Inc.
    10. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    11. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
    12. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
    13. Alicia H. Munnell, 1990. "How does public infrastructure affect regional economic performance?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, pages 69-112.
    14. repec:fth:prinin:331 is not listed on IDEAS
    15. Jovanovic, Boyan & Rob, Rafael, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Wiley Blackwell, vol. 56(4), pages 569-82, October.
    16. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    17. Glaeser, E.L. & Mare, D.C., 1994. "Cities and Skills," Working Papers e-94-11, Hoover Institution, Stanford University.
    18. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:
    1. Torge Middendorf, 2006. "Human Capital and Economic Growth in OECD Countries," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(6), pages 670-686, November.
    2. BERTINELLI, Luisito, 2003. "Does urbanization always foster human capital accumulation ?," CORE Discussion Papers 2003040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. David C. Maré, 2003. "Ideas for Growth?," Working Papers 03_19, Motu Economic and Public Policy Research.
    4. Pedro Martins & Jim Jin, 2010. "Firm-level social returns to education," Journal of Population Economics, Springer, vol. 23(2), pages 539-558, March.
    5. Ciccone, Antonio & Peri, Giovanni, 2002. "Identifying Human Capital Externalities: Theory with an Application to US Cities," IZA Discussion Papers 488, Institute for the Study of Labor (IZA).
    6. 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.
    7. Robert Baumann & Raphael Solomon, 2005. "Educational Spillovers: Does One Size Fit All?," Working Papers 05-10, Bank of Canada.
    8. Mueller, Normann, 2007. "(Mis-)Understanding Education Externalities," MPRA Paper 6307, University Library of Munich, Germany.
    9. Edna Maria Villarreal Peralta, 2011. "Rendimientos sociales de la educación en México 2005-2010," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 55, pages 898-916 Asociación de Economía de la Educación.
    10. Mueller, Normann, 2007. "(Mis-)Understanding Education Externalities," MPRA Paper 5331, University Library of Munich, Germany, revised Mar 2007.
    11. A. Dalmazzo & Guido De Blasio, 2003. "Social Returns to Education: Evidence from Italian Local Labor Market Areas," IMF Working Papers 03/165, International Monetary Fund.
    12. Nicholas Crafts & Mary O'Mahony, 2001. "A perspective on UK productivity performance," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 271-306, September.

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