Local Human Capital and Its Impact on Local Employment Chances in Britain
This paper examines how high human capital in a locality is associated with the employment outcomes of individuals. A probit model is used to examine how the employment probability of otherwise similar working age males is associated with changes in the share of degree holders in the local area. Different econometric specifications are employed in order to shed light on the positive effect found and its possible causes. The paper discusses three main accounts, referring to the consumption demand, productivity spillovers and production complementarities. For Britain, it is found that the share of high skill residents in a locality has a strong positive impact on the local employment chances of men with no qualifications. The effect on the local employment chances of the other educational groups is either insignificant or significant negative. These results are consistent with the consumer demand hypothesis that the presence of high educated, high income individuals in a locality boosts the demand for local low skill services. On the other hand, when the share of skilled workers is used, the results hint on possible simultaneous effect of production complementarities and productivity spillovers. However, the analysis points to the existing limitations of successfully isolating the consumption demand and the production function mechanisms and calls for further research.
|Date of creation:||Jan 2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ioannis Kaplanis, 2010.
"Wage Effects from Changes in Local Human Capital in Britain,"
SERC Discussion Papers
0039, Spatial Economics Research Centre, LSE.
- Ioannis Kaplanis, 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.
- Kaplanis, Ioannis, 2011. "Wage effects from changes in local human capital in Britain," Working Papers 2072/179614, Universitat Rovira i Virgili, Department of Economics.
- Maarten Goos & Alan Manning, 2007.
"Lousy and Lovely Jobs: The Rising Polarization of Work in Britain,"
The Review of Economics and Statistics,
MIT Press, vol. 89(1), pages 118-133, February.
- Maarten Goos & Alan Manning, 2003. "Lousy and lovely jobs: the rising polarization of work in Britain," LSE Research Online Documents on Economics 20002, London School of Economics and Political Science, LSE Library.
- Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
- Ian Richard Gordon & Ioannis Kaplanis, 2014.
"Accounting for Big-City Growth in Low-Paid Occupations: Immigration and/or Service-Class Consumption,"
Clark University, vol. 90(1), pages 67-90, 01.
- Gordon, Ian & Kaplanis, Ioannis, 2012. "Accounting for Big City Growth in Low Paid Occupations: Immigration and/or Service Class Consumption," Working Papers 2072/184038, Universitat Rovira i Virgili, Department of Economics.
- Ian Gordon & Ioannis Kaplanis, 2012. "Accounting for Big City Growth in Low Paid Occupations: Immigration and/or Service Class Consumption," SERC Discussion Papers 0106, Spatial Economics Research Centre, LSE.
- Ian Gordon & Ioannis Kaplanis, 2012. "Accounting for big city growth in low paid occupations: immigration and/or service class consumption," LSE Research Online Documents on Economics 44436, London School of Economics and Political Science, LSE Library.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010.
"Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations,"
Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
- Halfdanarson, Benedikt & Heuermann, Daniel F. & Suedekum, Jens, 2008. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," IZA Discussion Papers 3493, Institute for the Study of Labor (IZA).
- Ioannis Kaplanis, 2006. "The Geography of Employment Polarisation in Britain," ERSA conference papers ersa06p597, European Regional Science Association.
- Glaeser, Edward L & Mare, David C, 2001.
"Cities and Skills,"
Journal of Labor Economics,
University of Chicago Press, vol. 19(2), pages 316-42, April.
- Ian R. Gordon & Philip McCann, 2005. "Innovation, agglomeration, and regional development," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 523-543, October.
When requesting a correction, please mention this item's handle: RePEc:cep:sercdp:0040. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.