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Empirical evidence on human capital spillovers

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Author Info
Jeremy Rudd
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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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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Keywords: Human capital ; Education ; Income;

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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. [Downloadable!] (restricted)
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  2. repec:fth:prinin:331 is not listed on IDEAS
  3. Solow, Robert M, 1994. "Perspectives on Growth Theory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter. [Downloadable!] (restricted)
  4. Alicia H. Munnell & Leah M. Cook, 1990. "How does public infrastructure affect regional economic performance?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 11-33.
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  5. David Card, 1994. "Earnings, Schooling, and Ability Revisited," Working Papers 710, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  6. Christina D. Romer & David H. Romer, 1997. "Reducing Inflation: Motivation and Strategy," NBER Books, National Bureau of Economic Research, Inc, number rome97-1, September.
  7. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  8. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August. [Downloadable!] (restricted)
  9. Gary S. Murphy Becker & Kevin M., 1992. "The Division of Labor, Coordination Costs, and Knowledge," University of Chicago - George G. Stigler Center for Study of Economy and State 79, Chicago - Center for Study of Economy and State.
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  10. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February. [Downloadable!] (restricted)
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  11. Beeson, Patricia E & Eberts, Randall W, 1989. "Identifying Productivity and Amenity Effects in Interurban Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 443-52, August. [Downloadable!] (restricted)
  12. Jovanovic, Boyan & Rob, Rafael, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Blackwell Publishing, vol. 56(4), pages 569-82, October. [Downloadable!] (restricted)
  13. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December. [Downloadable!] (restricted)
  15. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
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  1. David. C. Maré, 2004. "Ideas for Growth?," Development and Comp Systems 0404007, EconWPA. [Downloadable!]
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  2. Martins, Pedro S., 2004. "Firm-Level Social Returns to Education," IZA Discussion Papers 1382, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Robert Baumann & Raphael Solomon, 2005. "Educational Spillovers: Does One Size Fit All?," Working Papers 05-10, Bank of Canada. [Downloadable!]
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  4. 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). [Downloadable!]
    Other versions:
  5. Mueller, Normann, 2007. "(Mis-)Understanding Education Externalities," MPRA Paper 6307, University Library of Munich, Germany. [Downloadable!]
  6. 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). [Downloadable!]
  7. 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. [Downloadable!]
  8. Mueller, Normann, 2007. "(Mis-)Understanding Education Externalities," MPRA Paper 5331, University Library of Munich, Germany, revised Mar 2007. [Downloadable!]
  9. 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. [Downloadable!]
  10. Torge Midendorf, 2005. "Human Capital and Economic Growth in OECD Countries," RWI Discussion Papers 0030, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
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