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Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations

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Author Info
Halfdanarson, Benedikt () (Statistics Iceland)
Heuermann, Daniel F. () (University of Trier)
Suedekum, Jens () (University of Duisburg-Essen)

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Abstract

In this paper we survey the recent developments in two empirical literatures at the crossroads of labor and urban economics: Studies about localized human capital externalities (HCE) and about the urban wage premium (UWP). After surveying the methods and main results of each of these two literatures separately, we highlight several interrelations between them. In particular we ask if HCE can be interpreted as one fundamental cause of the UWP, and we discuss if one literature can conceptually learn from the methods that are used by the other one.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3493.

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Length: 39 pages
Date of creation: May 2008
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Handle: RePEc:iza:izadps:dp3493

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Related research
Keywords: local labor markets; agglomeration; human capital externalities; urban wage premium;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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