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The Geographic Distribution of Human Capital: Measurement of Contributing Mechanisms

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  • Peter McHenry

    (Department of Economics, College of William and Mary)

Abstract

This paper investigates how the geographic distribution of human capital evolves over time. With U.S. data, I decompose generation-to-generation changes in local human capital into three factors: the previous generation’s human capital, intergenerational transmission of skills from parents to their children, and migration of the children. I find evidence of regression to the mean of local skills at the state level and divergence at the commuting zone level. Labor market size, climate, local colleges, and taxes affect local skill measures. Skills move from urban to rural labor markets through intergenerational transmission but from rural to urban labor markets through migration.

Suggested Citation

  • Peter McHenry, 2010. "The Geographic Distribution of Human Capital: Measurement of Contributing Mechanisms," Working Papers 92, Department of Economics, College of William and Mary.
    • Handle: RePEc:cwm:wpaper:92
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    Cited by:

    1. Peter McHenry & Melissa McInerney, 2012. "Are Wage Premiums for Black Women Illusory? A Critical Examination," Working Papers 120, Department of Economics, College of William and Mary.
    2. Bijlsma Ineke & van den Brakel Jan & van der Velden Rolf & Allen Jim, 2020. "Estimating Literacy Levels at a Detailed Regional Level: an Application Using Dutch Data," Journal of Official Statistics, Sciendo, vol. 36(2), pages 251-274, June.
    3. John V. Winters, 2018. "Do higher college graduation rates increase local education levels?," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 617-638, August.
    4. John V. Winters, 2018. "Do higher levels of education and skills in an area benefit wider society?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-10, December.
    5. Peter McHenry & Melissa McInerney, 2015. "Estimating Hispanic-White Wage Gaps Among Women: The Importance of Controlling for Cost of Living," Journal of Labor Research, Springer, vol. 36(3), pages 249-273, September.
    6. David L. Sjoquist & John V. Winters, 2015. "State Merit-Based Financial Aid Programs And College Attainment," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 364-390, June.
    7. Yasuhiro Sato & Masaaki Toma, 2017. "Transition of Spatial Distribution of Human Capital in　Japan," CIRJE F-Series CIRJE-F-1046, CIRJE, Faculty of Economics, University of Tokyo.
    8. Tommaso Agasisti & Cristian Barra & Roberto Zotti, 2019. "Research, knowledge transfer, and innovation: The effect of Italian universities’ efficiency on local economic development 2006−2012," Journal of Regional Science, Wiley Blackwell, vol. 59(5), pages 819-849, November.
    9. Winters, John V., 2014. "The Production and Stock of College Graduates for U.S. States," IZA Discussion Papers 8730, Institute of Labor Economics (IZA).
    10. K. Bruce Newbold & W. Mark Brown, 2015. "The Urban–Rural Gap In University Attendance: Determinants Of University Participation Among Canadian Youth," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 585-608, September.
    11. Jongkwan Lee, 2023. "The impact of a local human capital shock: evidence from World War II veterans," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1765-1798, July.
    12. Umut Erdem, 2016. "Regional Human Capital Distribution And Disparities In Turkey," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(1), pages 16-31, March.
    13. John V. Winters, 2020. "In-State College Enrollment and Later Life Location Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1400-1426.
    14. Peter McHenry, 2011. "The Relationship between Location Choice and Earnings Inequality," Working Papers 112, Department of Economics, College of William and Mary.
    15. Peter McHenry & Melissa McInerney, 2014. "The Importance of Cost of Living and Education in Estimates of the Conditional Wage Gap Between Black and White Women," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 695-722.
    16. Cristian Barra & Roberto Zotti, 2017. "Investigating the Human Capital Development–growth Nexus," International Regional Science Review, , vol. 40(6), pages 638-678, November.
    17. Yasuhiro Sato & Masaaki Toma, 2017. "Transition of Spatial Distribution of Human Capital in　Japan," CIRJE F-Series CIRJE-F-1046, CIRJE, Faculty of Economics, University of Tokyo.
    18. Nadia Granato & Anette Haas & Silke Hamann & Annekatrin Niebuhr, 2015. "The Impact Of Skill‐Specific Migration On Regional Unemployment Disparities In Germany," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 513-539, September.

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    More about this item

    Keywords

    Migration; Intergenerational transmission; Regional labor markets;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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