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Human capital and wages: evidence for external effects from the UK regions


  • Vassilis Monastiriotis


A large panel of regional UK data is used to provide detailed estimates of the direct and external effects of education and labour market experience on wages. The results offer strong evidence in support of the predictions of the endogenous growth theory (Lucas, 1988), where the - spatial or sectoral - concentration of human capital is expected to generate increasing returns in the production process. The findings are stronger for labour market experience, while no supportive evidence is found for the case of years of schooling. Possibly, better data on the quality of educational qualifications could offer a better measurement of the external education effects.

Suggested Citation

  • Vassilis Monastiriotis, 2002. "Human capital and wages: evidence for external effects from the UK regions," Applied Economics Letters, Taylor & Francis Journals, vol. 9(13), pages 843-846.
  • Handle: RePEc:taf:apeclt:v:9:y:2002:i:13:p:843-846 DOI: 10.1080/13504850210148198

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    References listed on IDEAS

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    Cited by:

    1. Kaplanis, Ioannis, 2010. "Wage effects from changes in local human capital in Britain," LSE Research Online Documents on Economics 33615, London School of Economics and Political Science, LSE Library.
    2. Helena Marques, 2005. "The skilled u-shaped Europe: is it really and on which side does it stand?," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2205-2220.
    3. Helena Marques & Hugh Metcalf, 2009. "Manufacturing Wages In The Enlarged Eu: The Role Of Neighbour-Country Effects," Manchester School, University of Manchester, vol. 77(1), pages 65-81, January.
    4. Rudiger Ahrend & Emily Farchy & Ioannis Kaplanis & Alexander C. Lembcke, 2015. "What Makes Cities More Productive? Agglomeration Economies and the Role of Urban Governance: Evidence from 5 OECD Countries," SERC Discussion Papers 0178, Spatial Economics Research Centre, LSE.
    5. Helena Marques & Hugh Metcalf, 2003. "Extending the EU Single Market Eastwards: Sectoral Trade and Real Wage Effects," Discussion Paper Series 2003_10, Department of Economics, Loughborough University, revised Oct 2003.
    6. Helena Marques & Hugh Metcalf, 2003. "Wage Gradients in an Enlarged EU," Discussion Paper Series 2003_13, Department of Economics, Loughborough University, revised Dec 2003.

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