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Accumulation of education and regional income growth: Limited human capital effects in Norway

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  • Jørn Rattsø

    () (Department of Economics, Norwegian University of Science and Technology)

  • Hildegunn E. Stokke

    (Department of Economics, Norwegian University of Science and Technology)

Abstract

Accumulation of education and geographic concentration of educated people in cities are expected to generate urban income growth. New economic geography predicts income divergence across regions. We investigate the dynamic process of accumulating tertiary education and regional income growth in Norway during the past four decades. The expansion of smart cities goes along with catching up of education level in the periphery and overall the education levels converge. Income levels also are shown to converge in distribution analysis using Kernel functions and first order Markov chains. However, the movements in the income distribution are unrelated to the accumulation of education. The hypothesis of equal income transition probabilities across subgroups of regions with different increases in education cannot be rejected. We conclude that accumulation of education has not been important for the pattern of income growth. Catching up from low income is not driven by education and income growth has not taken off in cities with increasing education level.

Suggested Citation

  • Jørn Rattsø & Hildegunn E. Stokke, 2011. "Accumulation of education and regional income growth: Limited human capital effects in Norway," Working Paper Series 11211, Department of Economics, Norwegian University of Science and Technology.
  • Handle: RePEc:nst:samfok:11211
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    Cited by:

    1. Jørn Rattsø & Hildegunn E. Stokke, 2011. "Migration and dynamic agglomeration economies: Regional income growth in Norway," Working Paper Series 11111, Department of Economics, Norwegian University of Science and Technology.
    2. Hildegunn Stokke & Jørn Rattsø & Fredrik Carlsen, 2012. "Urban wage premium increasing with education level: Identification of agglomeration effects for Norway," ERSA conference papers ersa12p459, European Regional Science Association.

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