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Local human capital and external economies: evidence for Spain

Author

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  • Esteve Sanromà

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

  • Raúl Ramos

    (AQR; Universitat de Barcelona (UB))

Abstract

It is assumed that human capital external economies can increase factor productivity. However, as human capital is accumulated in an unequal way in the territory, productivity improvements will be different among territories. So, in the presence of labour mobility, wage differences will induce migratory movements that would concentrate population in a given geographical area and increasing housing rents until the net advantage of residing and working in different places is equal. In this paper we estimate wage and housing rents equations following Rauch (1993) model using microdata from the EPF 1990/91. The results offer evidence of local human capital external economies for the Spanish economy.

Suggested Citation

  • Esteve Sanromà & Raúl Ramos, 2001. "Local human capital and external economies: evidence for Spain," Working Papers 2001/6, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2001-6
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    References listed on IDEAS

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    Cited by:

    1. Esteban Sanroma Melendez & Raul Ramos Lobo, 2001. "Capital humano local y productividad en las provincias espanolas," Working Papers in Economics 71, Universitat de Barcelona. Espai de Recerca en Economia.
    2. Javier Manuel Romani Fernandez & Jordi Surinach Caralt & Manuel Artis Ortuno, 2001. "Are commuting and residential mobility decisions simultaneous?: the case of catalonia," Working Papers in Economics 73, Universitat de Barcelona. Espai de Recerca en Economia.

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    More about this item

    Keywords

    External economies; Human capital;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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