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Educational Spillovers: Does One Size Fit All?

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Author Info
Robert Baumann
Raphael Solomon

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Abstract

In a search model of production, where agents accumulate heterogenous amounts of human capital, an individual worker’s wage depends on average human capital in the searching population. Based on this model, this paper estimates a Mincerian wage equation augmented with terms for average human capital. The authors find that there is a positive and significant spillover effect, but that the effect differs by gender and population group, as well as educational status. The differing spillover effects can only partially be explained by occupational choice.

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Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0503.

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Date of creation: Feb 2005
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Handle: RePEc:hcx:wpaper:0503

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Related research
Keywords: externality; human capital; social returns to education; spillover; wages;

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Find related papers by JEL classification:
I29 - Health, Education, and Welfare - - Education - - - Other
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

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  1. Jeremy Rudd, 2000. "Empirical evidence on human capital spillovers," Finance and Economics Discussion Series 2000-46, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  2. Glaeser, Edward L., 1999. "Learning in Cities," Journal of Urban Economics, Elsevier, vol. 46(2), pages 254-277, September. [Downloadable!] (restricted)
    Other versions:
  3. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August. [Downloadable!] (restricted)
  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. 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)
  6. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November. [Downloadable!] (restricted)
    Other versions:
  7. Daron Acemoglu & Joshua Angrist, 1999. "How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws," NBER Working Papers 7444, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June. [Downloadable!]
  9. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  10. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212. [Downloadable!] (restricted)
    Other versions:
  11. 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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