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Human Capital and Employment Growth in German Metropolitan Areas: New Evidence

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  • Steven Poelhekke

Abstract

Poelhekke S. Human capital and employment growth in German metropolitan areas: new evidence, Regional Studies . German metropolitan areas with highly skilled workers became increasingly skilled between 1975 and 2003, creating faster urban employment growth in both the former East and the West. However, by using metropolitan areas instead of administrative regions and correcting important biases, it is shown that the effect of the share of college graduates on growth is at least one-third smaller and closer to 0.5% employment growth for a 10% increase in human capital. Moreover, positive effects of high-school graduates with vocational training are found, especially if the concentration of technical professionals is high. City success may thus depend on attracting the ‘right’ combination of skills. Human capital Skills City employment growth Germany Generalized method of moments (GMM) estimation.

Suggested Citation

  • Steven Poelhekke, 2013. "Human Capital and Employment Growth in German Metropolitan Areas: New Evidence," Regional Studies, Taylor & Francis Journals, vol. 47(2), pages 245-263, February.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:2:p:245-263
    DOI: 10.1080/00343404.2011.571667
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    1. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Imputation Rules to Improve the Education Variable in the IAB Employment Subsample," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(3), pages 405-436.
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    1. Valerio Mendoza, Octasiano Miguel & Borsi, Mihály Tamás & Comim, Flavio, 2022. "Human capital dynamics in China: Evidence from a club convergence approach," Journal of Asian Economics, Elsevier, vol. 79(C).

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