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Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations

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  • Daniel Heuermann

    (Institute for Labour Law and Industrial Relations in the European Community, the University of Trier, 54286 Trier, Germany, daniel.f.heuermann@gmx.de)

  • Benedikt Halfdanarson

    (Statistics Iceland, National Accounts, Borgartun 21b, Reykjavik, 105, Iceland, benedikt@internet.is)

  • Jens Suedekum

    (Mercator School of Management, University of Duisburg-Essen, Lotharstrasse 65, Duisburg, 47057, Germany, jens.suedekum@uni-due.de)

Abstract

In this paper, a survey is presented of the recent developments in two empirical literatures at the crossroads of labour and urban economics: studies about localised human capital externalities (HCE) and about the urban wage premium (UWP). After surveying the methods and main results of each of these two literatures separately, several interrelations between them are highlighted. In particular, the discussion focuses on whether HCE can be interpreted as one fundamental cause of the UWP and whether one literature can learn conceptually from the other.

Suggested Citation

  • Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
  • Handle: RePEc:sae:urbstu:v:47:y:2010:i:4:p:749-767
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    Cited by:

    1. Zierahn, Ulrich, 2012. "Monocentric cities, endogenous agglomeration, and unemployment disparities," HWWI Research Papers 130, Hamburg Institute of International Economics (HWWI).
    2. Concetta Mendolicchio & Dimitri Paolini & Tito Pietra, 2014. "Income Taxes, Subsidies to Education, and Investments in Human Capital," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(1), pages 24-47, February.
    3. Ian G. Cahill & Michael Gager, 2014. "Explaining Canadian Regional Wage Relativities," The Review of Regional Studies, Southern Regional Science Association, vol. 44(2), pages 125-152, Summer.
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    8. Ana María Díaz, 2011. "The Employment Advantages of Skilled Urban Areas," VNIVERSITAS ECONÓMICA 010087, UNIVERSIDAD JAVERIANA - BOGOTÁ.
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    14. López, Jesús. & Acevedo-Villalobos, María Cecilia., 2013. "El acceso a los mercados y la disparidad del ingreso en los departamentos colombianos," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(320), pages 869-901, octubre-d.
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    16. Peters, Jan Cornelius, 2016. "Quantifying the effect of labor market size on learning externalities," Economics Working Papers 2016-11, Christian-Albrechts-University of Kiel, Department of Economics.
    17. Diana Lúcia Gonzaga da Silva & Carlos Roberto Azzoni, 2016. "Location and wages: the contribution of firm and worker effects in Brazil," Working Papers, Department of Economics 2016_41, University of São Paulo (FEA-USP).
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    19. Susana Katherine Chacón Espejo & Dusan Paredes Araya, 2013. "Spatial Income Inequality in Chile and the Rol of Spatial Labor Sorting," Documentos de Trabajo en Economia y Ciencia Regional 46, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2013.
    20. Ioannis Kaplanis, 2010. "Local Human Capital and Its Impact on Local Employment Chances in Britain," SERC Discussion Papers 0040, Spatial Economics Research Centre, LSE.
    21. Susana Katherine Chacón Espejo & Dusan Paredes Araya, 2013. "Income Inequality in Chile and the Rol of Spatial Labor Sorting," Documentos de Trabajo en Economia y Ciencia Regional 46, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2013.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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