IDEAS home Printed from https://ideas.repec.org/p/eei/rpaper/eeri_rp_2013_11.html
   My bibliography  Save this paper

Human capital, creative class and regional economic performance: A dynamic panel analysis

Author

Listed:
  • Esubalew Alehegn
  • Silvia Sacchetti
  • Ermanno Tortia

Abstract

Though the measurement and implication of human capital on economic growth has been well established since the works of Becker in the 1960s, recently Florida has argued that creative class is superior to human capital in explaining economic growth. The underlying difference between the two scholars is a measurement approach in which while Becker uses education as indicator of human capital Florida employs occupation as an identifier of the creative class. We exploit administrative data from the Institute for Employment Research (IAB) over the years 1998-2008 and employ system GMM to estimate and compare the effects on regional economic performance of human capital and creative class in Germany where economic performance is measured by GDP growth, employment growth and wage growth. The estimation unveils that analysis of regional economy through creative class in place of human capital can be used as an alternative approach yet the creative class, as has been praised by Florida, is not found to be superior to human capital in explicating economic performance of regions. Indeed, albeit the share of creative class (creative core and creative professionals) and university graduates have positive and robust impacts on GDP growth it is by no means the share of university graduates that have a far greater impact on economic growth. The opposite holds for employment growth and is inconclusive for wage growth. This finding may imply that the creative class driven economic development is directed towards more labor intensive forms of development whilst human capital is directed towards the form of development characterized by specialization and high capital intensity.

Suggested Citation

  • Esubalew Alehegn & Silvia Sacchetti & Ermanno Tortia, 2013. "Human capital, creative class and regional economic performance: A dynamic panel analysis," EERI Research Paper Series EERI RP 2013/11, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2013_11
    as

    Download full text from publisher

    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2013_11.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    2. Solomon Fabricant, 1959. "Basic Facts on Productivity Change," NBER Books, National Bureau of Economic Research, Inc, number fabr59-1, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eckhardt Bode & Lucia Perez Villar, 2017. "Creativity, education or what? On the measurement of regional human capital," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 51-67, March.
    2. Georgeta Lixandru (Bardasu), 2015. "The Evolution of the Performances at Regional Level," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(4), pages 135-139, October.

    More about this item

    Keywords

    Creative class; human capital; economic performance and dynamic panel.;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eei:rpaper:eeri_rp_2013_11. 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: (Julia van Hove). General contact details of provider: http://edirc.repec.org/data/eeriibe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.