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The Phantom of the Opera: Cultural Amenities, Human Capital, and Regional Economic Growth

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  • Falck, Oliver

    ()
    (Ifo Institute for Economic Research)

  • Fritsch, Michael

    ()
    (University of Jena)

  • Heblich, Stephan

    ()
    (University of Bristol)

Abstract

We analyze the extent to which endogenous cultural amenities affect the spatial equilibrium share of high-human-capital employees. To overcome endogeneity, we draw on a quasi-natural experiment in German history and exploit the exogenous spatial distribution of baroque opera houses built as a part of rulers' competition for prestigious cultural amenities. Robustness tests confirm our strategy and strengthen the finding that proximity to a baroque opera house significantly affects the spatial equilibrium share of high-human-capital employees. Then, a cross-region growth regression shows that these employees induce local knowledge spillovers and shift a location to a higher growth path.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5065.

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Length: 42 pages
Date of creation: Jul 2010
Date of revision:
Publication status: published in: Labour Economics, 2011, 18 (6), 755-766
Handle: RePEc:iza:izadps:dp5065

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Keywords: regional economic growth; Bohemians; human capital; cultural amenities;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Operas y Crecimiento
    by Jesús Fernández-Villaverde in Nada Es Gratis on 2011-03-19 00:47:53
  2. Culture as an Economic Engine
    by Jack Ewing in Economix on 2011-03-18 09:00:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Karol J. Borowiecki, 2013. "Agglomeration Economies in Classical Music," Working Papers 0047, European Historical Economics Society (EHES).
  2. Buettner, T & Janeba, Eckhard, 2013. "City Competition for the Creative Class," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79838, Verein für Socialpolitik / German Economic Association.
  3. Ludger Wößmann, 2011. "Die Bedeutung von Bildung für die Wirtschaftsentwicklung: Eine neue wirtschaftshistorische Forschungsagenda anhand preußischer Kreisdaten, Teil 2," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(01), pages 41-47, 01.
  4. Davide Cantoni & Franziska Kugler & Ludger Wößmann, 2014. "Der lange Schatten der Geschichte: Mechanismen der Persistenz in der Wirtschaftsgeschichte," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 67(02), pages 13-22, 01.
  5. MORIKAWA Masayuki, 2012. "Postgraduate Education and Human Capital Productivity in Japan," Discussion papers 12009, Research Institute of Economy, Trade and Industry (RIETI).
  6. Oliver Falck & Stephan Heblich & Anne Otto, 2013. "Agglomerationsvorteile in der Wissensgesellschaft: Empirische Evidenz für deutsche Gemeinden," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(03), pages 17-21, 02.
  7. Borowiecki, Karol Jan, 2012. "History matters: The origins of cultural supply in Italy," Discussion Papers of Business and Economics 15/2012, Department of Business and Economics, University of Southern Denmark.
  8. MORIKAWA Masayuki, 2013. "Postgraduate Education, Labor Participation, and Wages: An empirical analysis using micro data from Japan," Discussion papers 13065, Research Institute of Economy, Trade and Industry (RIETI).
  9. Michael Fritsch & Alina Sorgner, 2013. "Entrepreneurship and Creative Professions: A Micro-Level Analysis," SOEPpapers on Multidisciplinary Panel Data Research 538, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. Michael Fritsch & Michael Stützer, 2012. "The Geography of Creative People in Germany revisited," Jena Economic Research Papers 2012-065, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  11. Kristoffer Moeller, 2013. "Culturally clustered or in the cloud? Location of internet start-ups in Berlin," ERSA conference papers ersa13p455, European Regional Science Association.
  12. Benedikt Siegler, 2012. "The Effect of University Openings on Local Human Capital Formation: Difference-in-Differences Evidence from Germany," Working Papers 124, Bavarian Graduate Program in Economics (BGPE).
  13. Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2012. "What makes cities more competitive ? spatial determinants of entrepreneurship in India," Policy Research Working Paper Series 6198, The World Bank.

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