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Two tales on human capital and knowledge spillovers: the case of the US and Brazil

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  • Florian I. Schumacher
  • Joilson Dias
  • Edinaldo Tebaldi

Abstract

This article uses a quasi-Mincerian approach to verify whether the concentration of college-educated individuals employed in the business support services sector and in the own sector contributes to increased productivity in other sectors of the economy. We estimate the returns to education using data from the 2008 US Current Population Survey (March supplement) and from the 2008 Brazilian household survey. This article finds evidence of a positive and significant human capital sectorial spillover effect, which is consistent with Acemoglu's (1996) conjecture. The sectorial concentration of highly educated workers contributes to increase wages for all workers. This study also finds evidence of increasing returns to education in Brazil and diminishing returns to education in the United States. This finding may be explained by differences in supply of skilled workers in both economies. In addition, the short supply of highly skilled workers in Brazil likely explains the importance of the spillover effect from the business supporting sector.

Suggested Citation

  • Florian I. Schumacher & Joilson Dias & Edinaldo Tebaldi, 2014. "Two tales on human capital and knowledge spillovers: the case of the US and Brazil," Applied Economics, Taylor & Francis Journals, vol. 46(23), pages 2733-2743, August.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2733-2743
    DOI: 10.1080/00036846.2014.909575
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    References listed on IDEAS

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    1. Daniel Heuermann, 2011. "Human Capital Externalities in Western Germany," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 139-165.
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    Cited by:

    1. R駩s Chenavaz & Octavio Escobar, 2015. "Population distribution, effective area and economic growth," Applied Economics, Taylor & Francis Journals, vol. 47(53), pages 5776-5790, November.
    2. Donald R. Grimes & Penelope B. Prime & Mary Beth Walker, 2019. "Geographical Variation in Wages of Workers in Low-Wage Service Occupations: A U.S. Metropolitan Area Analysis," Economic Development Quarterly, , vol. 33(2), pages 121-133, May.
    3. Penelope B. Prime & Donald Grimes & Mary Beth Walker, 2016. "Exploring Wage Determination by Education Level," Economic Development Quarterly, , vol. 30(3), pages 191-202, August.

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