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The Spatial Decay of Human Capital Externalities - A Functional Regression Approach with Precise Geo-Referenced Data

Author

Listed:
  • Eppelsheimer, Johann

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Rust, Christoph

    (Universität Regensburg)

Abstract

"This paper analyzes human capital externalities from high-skilled workers by applying functional regression to precise geocoded register data. Functional regression enables us to describe the concentration of high-skilled workers around workplaces as continuous curves and to efficiently estimate a spillover function that depends on distance. Furthermore, our rich panel data allow us to address the sorting of workers and to disentangle human capital externalities from supply effects by using an extensive set of time-varying fixed effects. Our estimates reveal that human capital externalities attenuate with distance and disappear after 15 kilometers. Externalities from the immediate neighborhood are twice as large as those from surroundings ten kilometers away." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Eppelsheimer, Johann & Rust, Christoph, 2020. "The Spatial Decay of Human Capital Externalities - A Functional Regression Approach with Precise Geo-Referenced Data," IAB-Discussion Paper 202021, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202021
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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Stichprobe der Integrierten Arbeitsmarktbiografien (SIAB) ; Auswirkungen ; Beschäftigtenstruktur ; Diffusion ; Einkommenseffekte ; Hochqualifizierte ; IAB-Betriebs-Historik-Panel ; Informationsfluss ; Qualifikationsstruktur ; regionale Verteilung ; soziales Netzwerk ; Arbeitsplatzdichte ; Wissenstransfer ; 2000-2014;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • 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
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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