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Local human capital and external economies: evidence for Spain

  • Esteve Sanromà

    ()

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

  • Raúl Ramos

    ()

    (AQR; Universitat de Barcelona (UB))

It is assumed that human capital external economies can increase factor productivity. However, as human capital is accumulated in an unequal way in the territory, productivity improvements will be different among territories. So, in the presence of labour mobility, wage differences will induce migratory movements that would concentrate population in a given geographical area and increasing housing rents until the net advantage of residing and working in different places is equal. In this paper we estimate wage and housing rents equations following Rauch (1993) model using microdata from the EPF 1990/91. The results offer evidence of local human capital external economies for the Spanish economy.

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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2001/6.

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Length: 22 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:ieb:wpaper:129837art175
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  1. Giovanni Peri, . "Human Capital and Productivity in US Cities," Working Papers 138, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  2. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
  3. Antonio Ciccone & Giovanni Peri & Douglas Almond, . "Capital, Wages, and Growth: Theory and Evidence," Working Papers 152, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  4. Enrico Moretti, 2003. "Human Capital Externalities in Cities," NBER Working Papers 9641, National Bureau of Economic Research, Inc.
  5. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  6. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
  7. Adsera, Alicia, 2000. "Sectoral spillovers and the price of land: a cost analysis," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 565-585, September.
  8. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  9. Esteban Sanroma Melendez & Raul Ramos Lobo, 1999. "Regional structure of wages and external economies in Spain," Working Papers in Economics 51, Universitat de Barcelona. Espai de Recerca en Economia.
  10. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571.
  11. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
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