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Human Capital Externalities: A Sectoral-Regional Application for Spain



Human capital externalities have been rejected recently in a number of papers, focused mainly on the US experience. However, these papers only contemplate the possibility of aggregate externalities within politically defined boundaries, states or cities. Given the nature of human capital externalities, their size and very existence should depend on the intensity of human interaction. Using microdata on Spanish workers, we have analyzed the existence of human capital externalities within each industry in each region and within establishments. The results show the existence of significant externalities, half of it outside the scope of individual firms, which in turn suggests the need of an active governmental role promoting schooling and human capital accumulation.

Suggested Citation

  • Lorenzo Serrano, 2003. "Human Capital Externalities: A Sectoral-Regional Application for Spain," Economic Working Papers at Centro de Estudios Andaluces E2003/06, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2003_06

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    Cited by:

    1. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    2. Maite Blázquez & José Ramos, 2008. "Disparidades entre educación formal y educación en el puesto de trabajo," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 5, pages 1-32.

    More about this item


    Human capital; externalities; regions; industries.;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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