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Social Returns to Education: Evidence From Italian Local Labor Market Areas

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  • Mr. A. Dalmazzo
  • Mr. Guido De Blasio

Abstract

The paper provides a quantitative assessment of social returns to education in Italy. It shows that, after controlling for individual characteristics, local average human capital is positively correlated with individual wages, with estimated social returns between 2 and 3 percent. This result is robust to alternative estimation methods and does not seem to depend on endogenous sorting. The paper also shows that social returns are higher in the lagged areas of the south of Italy.

Suggested Citation

  • Mr. A. Dalmazzo & Mr. Guido De Blasio, 2003. "Social Returns to Education: Evidence From Italian Local Labor Market Areas," IMF Working Papers 2003/165, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/165
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    Cited by:

    1. Alberto Dalmazzo & Guido Blasio, 2007. "Social returns to education in Italian local labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(1), pages 51-69, March.
    2. Erik Canton, 2009. "Human Capital Externalities and Proximity: Evidence from Repeated Cross-Sectional Data," De Economist, Springer, vol. 157(1), pages 79-105, March.
    3. Andrey Launov & Christian Holzner, 2005. "Search Equilibrium, Production Parameters and Social Returns to Education: Theory and Estimation," 2005 Meeting Papers 604, Society for Economic Dynamics.
    4. Sergio Lodde, 2008. "Human Capital and Productivity Growth in Italian Regional Economies: A Sectoral Analysis," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 116(2), pages 211-233.
    5. Valter Di Giacinto & Giorgio Nuzzo, 2004. "Explaining labor productivity differentials on Italian regions," ERSA conference papers ersa04p105, European Regional Science Association.

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