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Local human capital and external economies: evidence for Spain

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Author Info
Esteve Sanromà () (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))
Raúl Ramos () (AQR; Universitat de Barcelona (UB))

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Abstract

It is assumed that human capital external economies can increase factor productivity. However, as human capital is accumulated in an unequal way in the territory, productivity improvements will be different among territories. So, in the presence of labour mobility, wage differences will induce migratory movements that would concentrate population in a given geographical area and increasing housing rents until the net advantage of residing and working in different places is equal. In this paper we estimate wage and housing rents equations following Rauch (1993) model using microdata from the EPF 1990/91. The results offer evidence of local human capital external economies for the Spanish economy.

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Publisher Info
Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2001/6.

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Length: 22 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:ieb:wpaper:129837art175

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Related research
Keywords: External economies; Human capital;

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Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

References listed on IDEAS
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. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291 Elsevier. [Downloadable!] (restricted)
    Other versions:
  2. 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)
  3. Esteban Sanroma Melendez & Raul Ramos Lobo, 1999. "Regional structure of wages and external economies in Spain," Working Papers in Economics 51, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
    Other versions:
  4. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank. [Downloadable!]
    Other versions:
  5. 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)
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  6. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571. [Downloadable!] (restricted)
  7. Antonio Ciccone & Giovanni Peri & Douglas Almond, 1999. "Capital, Wages, and Growth: Theory and Evidence," Economics Working Papers 389, Department of Economics and Business, Universitat Pompeu Fabra, revised May 1999. [Downloadable!]
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  8. 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)
  9. Giovanni Peri, . "Human Capital and Productivity in US Cities," Working Papers 138, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
  10. 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:
(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. Esteban Sanroma Melendez & Raul Ramos Lobo, 2001. "Capital humano local y productividad en las provincias espanolas," Working Papers in Economics 71, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
  2. Javier Manuel Romani Fernandez & Jordi Surinach Caralt & Manuel Artis Ortuno, 2001. "Are commuting and residential mobility decisions simultaneous?: the case of catalonia," Working Papers in Economics 73, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
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