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Local Human Capital Externalities or Sorting? Evidence From a Displaced Workers Sample

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In this paper we want to assess if the positive association between individual earnings and local average education is due to human capital externalities or just reflects some ommitted factors. Using a sample of displaced workers, we take into account firm characteristics as well as individual fixed e.ects. We find that, on average educational externalities are quite small, however it seems that these externalities are not captured equally by di.erent types of individuals. More educated workers benefit from a highly-educated environment relative to workers with lower levels of education (about 3% more) and these gains are not all acquired immediately, but through time.

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  • João Carlos Cerejeira da Silva, 2003. "Local Human Capital Externalities or Sorting? Evidence From a Displaced Workers Sample," NIPE Working Papers 9/2003, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:9/2003
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    Cited by:

    1. Alexander Muravyev, 2006. "Human Capital Externalities: Evidence from the Transition Economy of Russia," Discussion Papers of DIW Berlin 629, DIW Berlin, German Institute for Economic Research.
    2. Giulio Bosio & Chiara Noè, 2011. "Higher Education Expansion, Human Capital Externalities and Wages: Italian Evidence within Occupation," Working Papers 39, AlmaLaurea Inter-University Consortium.
    3. Edna Maria Villarreal Peralta, 2011. "Rendimientos sociales de la educación en México 2005-2010," Investigaciones de Economía de la Educación volume 6,in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 55, pages 898-916 Asociación de Economía de la Educación.

    More about this item

    Keywords

    Capital Externalities; Education; Wages; Agglomeration.;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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