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Human Capital and Regional Entry of Firms

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  • Berglund, Elisabet

    (Department of Economics, Umeå University)

Abstract

This paper studies the effect of human capital on the regional entry of firms. An econometric model for a system of disjoint regions and frequency data is constructed, making the comparison between the regions a random discrete choice problem. Empirical evidence from Swedish labour market regions for the manufacturing and the professional service sectors, 1986-1989, is presented. For both sectors, the share with higher education has a positive effect on the regional entry probability of firms in the medium range of the share variable. Sector specific experience has a positive but declining effect on the regional entry probability of firms in the professional service sector whereas it has a negative effect in the manufacturing sector. In relation to other variables in the models the levels of education have moderate effects while the shares with sector specific experience have larger impacts.

Suggested Citation

  • Berglund, Elisabet, 1999. "Human Capital and Regional Entry of Firms," Umeå Economic Studies 500, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0500
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    References listed on IDEAS

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    6. Elisabet Berglund & Kurt Brännäs, 2001. "Plants' entry and exit in Swedish municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(3), pages 431-448.
    7. Cameron, A Colin & Windmeijer, Frank A G, 1996. "R-Squared Measures for Count Data Regression Models with Applications to Health-Care Utilization," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(2), pages 209-220, April.
    8. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Berglund, Elisabet, 1999. "Options, Timing, and Regional Entry of Firms," Umeå Economic Studies 505, Umeå University, Department of Economics.

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    More about this item

    Keywords

    Number of Regional Entries; Labour Market Regions; Poisson Regression;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L00 - Industrial Organization - - General - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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