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Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run

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  • Claude Diebolt
  • Ralph Hippe

Abstract

In a recent contribution, Redding and Schott [2003. “Distance, Skill Deepening and Development: Will Peripheral Countries Ever Get Rich?” Journal of Development Economics 72 (2): 515–541. doi:10.1016/S0304-3878(03)00118-4] add human capital to a two sector NEG model, highlighting that remoteness represents a penalty that gives disincentives to invest in human capital. But is this hypothesis consistent with long-term evidence? We test the persistence of this effect at the regional level in an historical setting. The results show that market access has a significant positive influence on human capital in OLS, Tobit and IV regression models. Thus, the paper confirms the ‘penalty of remoteness’ hypothesis for Europe in the long run.

Suggested Citation

  • Claude Diebolt & Ralph Hippe, 2018. "Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run," Education Economics, Taylor & Francis Journals, vol. 26(3), pages 285-304, May.
  • Handle: RePEc:taf:edecon:v:26:y:2018:i:3:p:285-304
    DOI: 10.1080/09645292.2017.1401979
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    References listed on IDEAS

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    1. Cinnirella, Francesco & Hornung, Erik, 2016. "Landownership concentration and the expansion of education," Journal of Development Economics, Elsevier, vol. 121(C), pages 135-152.
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    Cited by:

    1. Claude Diebolt & Charlotte Le Chapelain, 2019. "Human Capital and Economic Growth," Working Papers 02-19, Association Française de Cliométrie (AFC).
    2. Ralph Hippe & Roger Fouquet, 2018. "The Knowledge Economy in Historical Perspective," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 19(1), pages 75-108, January.
    3. Mikołaj Szołtysek & Radoslaw Poniat & Sebastian Klüsener & Siegfried Gruber, 2017. "Family organisation and human capital inequalities in historic Europe: testing the association anew," MPIDR Working Papers WP-2017-012, Max Planck Institute for Demographic Research, Rostock, Germany.
    4. repec:gam:jsusta:v:10:y:2018:i:12:p:4848-:d:191678 is not listed on IDEAS
    5. repec:gam:jsusta:v:10:y:2018:i:9:p:2967-:d:164869 is not listed on IDEAS
    6. Ralph Hippe, 2014. "Human Capital in European Regions since the French Revolution," Working Papers 04-14, Association Française de Cliométrie (AFC).

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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