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

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  • Halfdanarson, Benedikt

    ()
    (Statistics Iceland)

  • Heuermann, Daniel F.

    ()
    (University of Trier)

  • Suedekum, Jens

    ()
    (Heinrich Heine University Düsseldorf)

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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Bibliographic Info

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
Date of revision:
Publication status: published in: Urban Studies, 2010, 47 (4), 749-767
Handle: RePEc:iza:izadps:dp3493

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

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Citations

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Cited by:
  1. Ulrich Zierahn, 2012. "Monocentric Cities, Endogenous Agglomeration, and Unemployment Disparities," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 201238, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. Schlitte, Friso, 2010. "Local human capital, segregation by skill, and skill-specific employment growth," IAB Discussion Paper 201022, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Wrede, Matthias, 2012. "Heterogeneous skills and homogeneous land: Segmentation and agglomeration," IWQW Discussion Paper Series 04/2012, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  4. Matano, Alessia & Naticchioni, Paolo, 2013. "What Drives the Urban Wage Premium? Evidence along the Wage Distribution," IZA Discussion Papers 7811, Institute for the Study of Labor (IZA).
  5. Raimund Krumm & Harald Strotmann, 2013. "The impact of regional location factors on job creation, job destruction and employment growth in manufacturing," Jahrbuch für Regionalwissenschaft, Springer, Springer, vol. 33(1), pages 23-48, February.
  6. Susana Katherine Chacón Espejo & Dusan Paredes Araya, 2013. "Spatial Income Inequality in Chile and the Rol of Spatial Labor Sorting," Documentos de Trabajo en Economia y Ciencia Regional, Universidad Catolica del Norte, Chile, Department of Economics 46, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2013.
  7. Ioannis Kaplanis, 2010. "Local human capital and its impact on local employment chances in Britain," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33503, London School of Economics and Political Science, LSE Library.
  8. Ana Maria DIAZ ESCOBAR, 2011. "The Employment Advantages of Skilled Urban Areas," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2011015, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  9. Mendolicchio Concetta & Paolini Dimitri & Pietra Tito, 2012. "Asymmetric Information And Overeducation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, De Gruyter, vol. 12(1), pages 1-29, October.
  10. Ana María Díaz, 2013. "The Employment Advantages of Skilled Urban Municipalities in Colombia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.

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