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Estimating Human Capital Externalities:The Case of Spanish Regions

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  • Manuel Hidalgo Pérez

    ()
    (Department of Economics, Universidad Pablo de Olavide)

  • Walter García-Fontes

    (Universidad Pompeu Fabra y CREA)

Abstract

We estimate the strength of schooling externalities for Spanish regions over the 1981-2001 period. Our empirical work employs both main approaches available in the literature. Both methodologies yield significant externalities. Using a growth accounting exercise, we find that human capital externalities account for one half of the increase in real wages for the period between 1981 and 2001.

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File URL: http://www.upo.es/serv/bib/wps/econ0917.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 09.17.

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Length: 27 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:pab:wpaper:09.17

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Keywords: externalities; human capital; constant composition.;

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  1. Abadie,A., 1995. "Changes in Spanish Labor Income Structure During the 1980's:a Quantile Regression Approach," Papers 9521, Centro de Estudios Monetarios Y Financieros-.
  2. Katz, Lawrence F & Murphy, Kevin M, 1992. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 35-78, February.
  3. Jeremy Rudd, 2000. "Empirical evidence on human capital spillovers," Finance and Economics Discussion Series 2000-46, Board of Governors of the Federal Reserve System (U.S.).
  4. Angel de la Fuente & Rafael Domenech & Juan Francisco Jimeno, 2003. "Human capital as a factor of growth and employment at the regional level. The case of Spain," UFAE and IAE Working Papers 610.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Ciccone Antonio & Peri Giovanni, 2007. "Identifying Human Capital Externalities. Theory with Applications," Working Papers 201098, Fundacion BBVA / BBVA Foundation.
  6. Manuel A. Hidalgo Pérez & Jesús Rodríguez López & José Mª O.Kean Alonso, 2008. "Labor demand and information technologies: evidence for Spain, 1980-2005," Economic Working Papers at Centro de Estudios Andaluces E2008/13, Centro de Estudios Andaluces.
  7. Manuel A. Hidalgo, 2008. "A Demand-Supply Analysis of the Spanish Education Wage Premium in the 1980s and 1990s," Working Papers 08.01, Universidad Pablo de Olavide, Department of Economics.
  8. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  9. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
  10. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
  11. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
  12. Joshua D. Angrist, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," Working papers 95-5, Massachusetts Institute of Technology (MIT), Department of Economics.
  13. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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