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Human Capital and Regional Wage Gaps

  • Enrique López-Bazo

    ()

    (Faculty of Economics, University of Barcelona)

  • Elisabet Motellón

    ()

    (Faculty of Economics, University of Barcelona)

This paper uses micro-level data to analyse the effect of human capital on regional wage differentials. The results for the set of Spanish regions confirm that they differ in the endowment of human capital, but also that the return that individuals obtain from it varies sharply across regions. Regional heterogeneity in returns is especially intense in the case of education, particularly when considering its effect on the employability of individuals. These differences in endowment and, especially, in returns to human capital, account for a significant proportion of regional wage gaps.

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File URL: http://www.ub.edu/irea/working_papers/2009/200924.pdf
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200924.

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Length: 29 pages
Date of creation: Nov 2009
Date of revision: Nov 2009
Handle: RePEc:ira:wpaper:200924
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