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Individual earnings and educational externalities in the European Union

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Abstract

This paper examines whether differences in educational externalities affect individual earnings across regions in the EU. Using microeconomic data from the European Community Household Panel, the analysis relies on spatial economic analysis in order to determine to what extent differences in individual earnings are the result of (a) the educational attainment of the individual, (b) the educational attainment of the other members of the household he/she lives in, (c) the educational endowment of the region where the individual lives, or (d) the educational endowment of the neighbouring regions. The results highlight that, in addition to the expected positive returns of personal educational attainment, place-based regional and supra-regional educational externalities generate significant pecuniary benefits for workers. These findings are robust to the inclusion of different individual, household, and regional control variables.

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  • Andrés Rodríguez-Pose & Vassilis Tselios, 2009. "Individual earnings and educational externalities in the European Union," Working Papers 2009-07, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  • Handle: RePEc:imd:wpaper:wp2009-07
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    1. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," Working Papers 70, Barcelona Graduate School of Economics.
    2. Rikard Eriksson, 2010. "Localized Spillovers and Knowledge Flows: How Does Proximity Influence the Performance of Plants?," Papers in Evolutionary Economic Geography (PEEG) 1004, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2010.
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    Cited by:

    1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    2. Andrés Rodríguez-Pose & Vassilis Tselios, 2012. "Welfare Regimes and the Incentives to Work and Get Educated," Environment and Planning A, , vol. 44(1), pages 125-149, January.
    3. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    4. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    5. Rodríguez-Pose, Andrés & Ketterer, Tobias & Castells-Quintana, David, 2015. "Do we follow the money? The drivers of migration across regions in the EU," REGION, European Regional Science Association, vol. 2, pages 27-45.
    6. Sofia Wixe, 2015. "The Impact of Spatial Externalities: Skills, Education and Plant Productivity," Regional Studies, Taylor & Francis Journals, vol. 49(12), pages 2053-2069, December.
    7. Backman, Mikaela & Kohlhase, Janet, 2013. "The Influence of Diversity on the Formation, Survival and Growth of New Firms," Working Paper Series in Economics and Institutions of Innovation 337, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    8. repec:eee:iepoli:v:42:y:2018:i:c:p:11-19 is not listed on IDEAS

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    Keywords

    individual earnings; educational attainment; externalities; households; regions; Europe;

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