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Wage effects from changes in local human capital in Britain

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  • Kaplanis, Ioannis

Abstract

This paper examines the impact of local human capital on individuals’ wages through external effects. Employing wage regressions, it is found that changes in individuals’ wages are positively associated with changes in the shares of high-paid occupation workers in the British travel-to-work-areas for the late 1990s. I examine this positive association for different occupational groups (defined by pay) in order to disentangle between production function and consumer demand driven theoretical explanations. The wage effect is found to be stronger and significant for the bottom-paid occupational quintile compared to the middle-paid ones, and using also sectoral controls the paper argues to provide evidence for the existence of consumer demand effects.

Suggested Citation

  • Kaplanis, Ioannis, 2011. "Wage effects from changes in local human capital in Britain," Working Papers 2072/179614, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/179614
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    Cited by:

    1. Ian Richard Gordon & Ioannis Kaplanis, 2014. "Accounting for Big-City Growth in Low-Paid Occupations: Immigration and/or Service-Class Consumption," Economic Geography, Clark University, vol. 90(1), pages 67-90, January.
    2. Lee, Neil & Sissons, Paul & Hughes, Ceri & Green, Anne & Atfield, Gaby & Adam, Duncan & Rodríguez-Pose, Andrés, 2014. "Cities, growth and poverty: evidence review," LSE Research Online Documents on Economics 55799, London School of Economics and Political Science, LSE Library.
    3. Lee, Neil & Clarke, Stephen, 2019. "Do low-skilled workers gain from high-tech employment growth? High-technology multipliers, employment and wages in Britain," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    4. ., 2014. "Urban economic performance," Chapters, in: Urban Economics and Urban Policy, chapter 2, pages 11-53, Edward Elgar Publishing.
    5. Neil Lee & Stephen Clarke, 2017. "Who gains from high-tech growth? High-technology multipliers, employment and wages in Britain," SPRU Working Paper Series 2017-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    6. Neil Lee & Andrés Rodríguez-Pose, 2016. "Is There Trickle-Down from Tech? Poverty, Employment, and the High-Technology Multiplier in U.S. Cities," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 106(5), pages 1114-1134, September.
    7. Neil Lee & Paul Sissons, 2016. "Inclusive growth? The relationship between economic growth and poverty in British cities," Environment and Planning A, , vol. 48(11), pages 2317-2339, November.
    8. Rudiger Ahrend & Emily Farchy & Ioannis Kaplanis & Alexander C. Lembcke, 2015. "What Makes Cities More Productive? Agglomeration Economies and the Role of Urban Governance: Evidence from 5 OECD Countries," SERC Discussion Papers 0178, Centre for Economic Performance, LSE.
    9. Neil Lee & Andrés Rodríguez-Pose, 2013. "Innovation and spatial inequality in Europe and USA," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 1-22, January.
    10. Rudiger Ahrend & Emily Farchy & Ioannis Kaplanis & Alexander C. Lembcke, 2017. "What Makes Cities More Productive? Evidence From Five Oecd Countries On The Role Of Urban Governance," Journal of Regional Science, Wiley Blackwell, vol. 57(3), pages 385-410, June.
    11. Ahrend, Rudiger & Farchy, Emily & Kaplanis, Ioannis & Lembcke, Alexander C., 2016. "What Makes Cities More Productive? Evidence from 5 OECD Countries on the Role of Urban Governance," Beiträge zur Jahrestagung 2016 (Witten/Herdecke) 175187, Verein für Socialpolitik, Ausschuss für Wirtschaftssysteme und Institutionenökonomik.
    12. Ioannis Kaplanis, 2010. "Local Human Capital and Its Impact on Local Employment Chances in Britain," SERC Discussion Papers 0040, Centre for Economic Performance, LSE.
    13. Neil Lee, 2014. "The Creative Industries and Urban Economic Growth in the UK," Environment and Planning A, , vol. 46(2), pages 455-470, February.
    14. ., 2014. "Urban policies," Chapters, in: Urban Economics and Urban Policy, chapter 8, pages 185-218, Edward Elgar Publishing.
    15. Neil Lee, 2011. "Are Innovative Regions More Unequal? Evidence from Europe," Environment and Planning C, , vol. 29(1), pages 2-23, February.

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    More about this item

    Keywords

    Mercat de treball; Salaris; Recursos humans; 331 - Treball. Relacions laborals. Ocupació. Organització del treball;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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