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Identifying the external effects of human capital: a two-stage approach

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  • Chris Sakellariou

Abstract

In this study microdata from the Guatemala household Survey are analysed using a testable model of endogenous growth in order to detect any external effects of education. In the first stage of the analysis, a wage equation is estimated and the internal effects of education are filtered out. In the second stage, the resulting industry wage premiums are regressed on average human capital as well as industry-specific characteristics to account for external effects. While stronger conclusions cannot be drawn, the hypothesis that external effects may be present cannot be rejected.

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  • Chris Sakellariou, 2001. "Identifying the external effects of human capital: a two-stage approach," Applied Economics Letters, Taylor & Francis Journals, vol. 8(3), pages 191-194.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:3:p:191-194
    DOI: 10.1080/13504850150504586
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    References listed on IDEAS

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    1. Winter-Ebmer, Rudolf, 1994. "Endogenous Growth, Human Capital, and Industry Wages," Bulletin of Economic Research, Wiley Blackwell, vol. 46(4), pages 289-314, October.
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    Cited by:

    1. Vassilis Monastiriotis, 2002. "Human capital and wages: evidence for external effects from the UK regions," Applied Economics Letters, Taylor & Francis Journals, vol. 9(13), pages 843-846.
    2. Ozan Bakis & Nurhan Davutyan & Haluk Levent & Sezgin Polat, 2010. "External Returns to Higher Education in Turkey," Working Papers 517, Economic Research Forum, revised 04 Jan 2010.
    3. Kirby, Simon & Riley, Rebecca, 2008. "The external returns to education: UK evidence using repeated cross-sections," Labour Economics, Elsevier, vol. 15(4), pages 619-630, August.
    4. Chris Sakellariou & Ramin Maysami, 2004. "Lucas type external effects of human capital: strong evidence using microdata," Applied Economics Letters, Taylor & Francis Journals, vol. 11(6), pages 343-346.
    5. Elsie Echeverri‐Carroll & Sofia G. Ayala, 2009. "Wage differentials and the spatial concentration of high‐technology industries," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 623-641, August.
    6. Paul Verstraten, 2018. "The scope of the external return to higher education," CPB Discussion Paper 381.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Paul Verstraten, 2018. "The scope of the external return to higher education," CPB Discussion Paper 381, CPB Netherlands Bureau for Economic Policy Analysis.

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