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Local human capital and external economies: evidence for Spain

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  • Ramos, Raul
  • Sanroma, Esteban

Abstract

It is assumed that human capital external economies can increase factor productivity. However, as human capital is accumulated in an unequal way in the territory, productivity improvements will be different among territories. So, in the presence of labour mobility, wage differences will induce migratory movements that would concentrate population in a given geographical area and increasing housing rents until the net advantage of residing and working in different places is equal. In this paper we estimate wage and housing rents equations following Rauch (1993) model using microdata from the EPF 1990/91. The results offer evidence of local human capital external economies for the Spanish economy.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa99pa309.

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Date of creation: Aug 1999
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Handle: RePEc:wiw:wiwrsa:ersa99pa309

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  1. Adsera, A., 1998. "Sectoral Spillovers and the Price of Land. A Cost Analysis," UFAE and IAE Working Papers 413.98, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Antonio Ciccone & Giovanni Peri & Douglas Almond, 1999. "Capital, wages and growth: Theory and evidence," Economics Working Papers 389, Department of Economics and Business, Universitat Pompeu Fabra, revised May 1999.
  3. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
  4. James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc.
  5. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
  6. Raul Ramos & Esteban Sanroma, 1998. "Regional structure of wages and external economies in Spain," ERSA conference papers ersa98p160, European Regional Science Association.
  7. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291 Elsevier.
  8. Giovanni Peri, . "Human Capital and Productivity in US Cities," Working Papers 138, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  9. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  10. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571.
  11. 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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Cited by:
  1. Esteban Sanroma Melendez & Raul Ramos Lobo, 2001. "Capital humano local y productividad en las provincias espanolas," Working Papers in Economics 71, Universitat de Barcelona. Espai de Recerca en Economia.
  2. Javier Manuel Romani Fernandez & Jordi Surinach Caralt & Manuel Artis Ortuno, 2001. "Are commuting and residential mobility decisions simultaneous?: the case of catalonia," Working Papers in Economics 73, Universitat de Barcelona. Espai de Recerca en Economia.

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