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Local Human Capital Externalities or Sorting? Evidence From a Displaced Workers Sample

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Author Info
João Carlos Cerejeira da Silva () (Universidade do Minho)

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Abstract

In this paper we want to assess if the positive association between individual earnings and local average education is due to human capital externalities or just reflects some ommitted factors. Using a sample of displaced workers, we take into account firm characteristics as well as individual fixed e.ects. We find that, on average educational externalities are quite small, however it seems that these externalities are not captured equally by di.erent types of individuals. More educated workers benefit from a highly-educated environment relative to workers with lower levels of education (about 3% more) and these gains are not all acquired immediately, but through time.

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File URL: http://www3.eeg.uminho.pt/economia/nipe/docs/2003/NIPE_WP_9_2003.PDF
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Publisher Info
Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 9/2003.

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Date of creation: 2003
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Handle: RePEc:nip:nipewp:9/2003

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Postal: Núcleo de Investigação em Políticas Económicas, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal
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Related research
Keywords: Capital Externalities Education Wages Agglomeration.

Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
R1 - Urban, Rural, and Regional Economics - - General Regional Economics
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. repec:fth:prinin:357 is not listed on IDEAS
  3. A. R. Cardoso, 2000. "Wage differentials across firms: an application of multilevel modelling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(4), pages 343-354. [Downloadable!]
  4. David Card & Alan Krueger, 1996. "Labor Market Effects of School Quality: Theory and Evidence," Working Papers 736, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  5. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed The Labor Market?," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1169-1213, November. [Downloadable!] (restricted)
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  7. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November. [Downloadable!] (restricted)
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  8. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Robert Gibbons & Lawrence F. Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," NBER Working Papers 3182, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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