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How market access shapes human capital investment in a peripheral country

  • Anna Matas


    (Dpt. Economia Aplicada, Universitat Autònoma de Barcelona and Institut d’Economia de Barcelona (IEB))

  • Josep Lluís Raymond


    (Dpt. Economia Aplicada, Universitat Autònoma de Barcelona and Institut d’Economia de Barcelona (IEB))

  • José Luis Roig


    (Dpt. Economia Aplicada, Universitat Autònoma de Barcelona, Barcelona, Spain.)

Human capital endowment is one of the main factors influencing the level of development of a region. This paper analyses whether remoteness from economic activity has a negative effect on human capital accumulation and, consequently, on economic development. Making use of microdata this research proves that remoteness from economic activity has contributed to explain the divergences in the level of education observed across Spanish provinces over the last 50 years. The effect is significant even when controlling for the improvement of education supply. Nonetheless, the accessibility effect has been petering out since the 1960s due to the decreasing barriers to mobility.

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Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number XREAP2013-06.

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Length: 43 pages
Date of creation: Oct 2013
Date of revision: Oct 2013
Handle: RePEc:xrp:wpaper:xreap2013-06
Contact details of provider: Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques i Empresarials, Universitat de Barcelona, c/ Tinent Coronel Valenzuela, 1-11, 08034 Barcelona
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  2. Head, Keith & Mayer, Thierry, 2006. "Regional wage and employment responses to market potential in the EU," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 573-594, September.
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  8. Jesus Lopez-Rodriguez & J. Andres Faina & Jose Lopez-Rodriguez, 2007. "Human Capital Accumulation and Geography: Empirical Evidence from the European Union," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 217-234.
  9. S. Brakman & H Garretsen & M. Schramm, 2004. "The Spatial Distribution of Wages:Estimating the Helpman-Hanson model for Germany," Working Papers 03-09, Utrecht School of Economics.
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