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Skilled human capital accretion, skilled wages and the geography of growing early-stage businesses

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  • Leonidas Hernández
  • Félix Modrego
  • Miguel Atienza

Abstract

This article investigates the relationships among skilled human capital, skilled wages, and growing early-stage (GE) business activity at the level of functional regions in Chile, and assesses the role of external and local skilled human capital accretion. Based on theories of occupational-choice and heterogeneous entrepreneurship in economics, we estimate count-data econometric models of the regional number of growing early-stage businesses that account for the endogeneity of skilled wages. Skilled human capital accretion increases regional growing early-stage businesses activity, while skilled wages deter it. Changes in local skilled human capital explain regional differences in growing early-stage businesses activity, whereas the effect of changes in external skilled human capital is less clear.

Suggested Citation

  • Leonidas Hernández & Félix Modrego & Miguel Atienza, 2023. "Skilled human capital accretion, skilled wages and the geography of growing early-stage businesses," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(4), pages 552-574, October.
    • Handle: RePEc:taf:specan:v:18:y:2023:i:4:p:552-574
    DOI: 10.1080/17421772.2023.2200483
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