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The role of firm-level and regional human capital for the social returns to education - Evidence from German social security data

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  • Nils Braakmann

    ()
    (Institute of Economics, University of Lüneburg)

Abstract

This paper provides first evidence on the anatomy of human capital externalities arising from both firm-level and regional human capital. Using panel data from German social security records, both at an individual and aggregated at the plant and regional level, I estimate earnings functions incorporating measures of regional and firm-level human capital while controlling for various types of unobserved heterogeneity. The results suggest that the firm-level share of high-skilled workers generates positive, although small social returns to education for low-skilled and skilled workers but not for the high-skilled. This finding is in line with learning based theories of human capital externalities. Some estimates also suggest negative social returns for the regional shares of low-skilled workers. No such effects are found for the firm-level shares of low-skilled workers and the regional shares of high-skilled workers.

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Bibliographic Info

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 126.

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Length: 43 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:lue:wpaper:126

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Related research

Keywords: Human capital externalities; social returns to education; error-component model;

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