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Spatial wage disparities and human capital externalities in France

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  • Paul Charruau

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique)

Abstract

We re‐examine the respective role of local density and local concentration of human capital in the agglomeration gains for about 750,00 individuals working in 304 commuting zones of metropolitan France over the period 2009–2015. Agglomeration gains are mostly driven by human capital effects over this period. Also, because it absorbs dynamic learning effects, the use of worker fixed effects to address spatial sorting of individuals may underestimate, by about two third, the wage premium with respect to local concentration of human capital over a midterm period. Finally, wage gaps stem more from differences in human capital in the private sector than in the public sector. We do not find evidence of a multiplier effect of public employment on local human capital externalities in the private sector.

Suggested Citation

  • Paul Charruau, 2024. "Spatial wage disparities and human capital externalities in France," Post-Print halshs-04732400, HAL.
    • Handle: RePEc:hal:journl:halshs-04732400
    DOI: 10.1111/jors.12696
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