Human Capital and Regional Entry of Firms

Elisabet Berglund ()
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Elisabet Berglund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

No 500, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This paper studies the effect of human capital on the regional entry of firms. An econometric model for a system of disjoint regions and frequency data is constructed, making the comparison between the regions a random discrete choice problem. Empirical evidence from Swedish labour market regions for the manufacturing and the professional service sectors, 1986-1989, is presented. For both sectors, the share with higher education has a positive effect on the regional entry probability of firms in the medium range of the share variable. Sector specific experience has a positive but declining effect on the regional entry probability of firms in the professional service sector whereas it has a negative effect in the manufacturing sector. In relation to other variables in the models the levels of education have moderate effects while the shares with sector specific experience have larger impacts.

Keywords: Number of Regional Entries; Labour Market Regions; Poisson Regression (search for similar items in EconPapers)
JEL-codes: C23 C25 I21 L00 L10 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-fin, nep-ind and nep-lab
Date: 1999-04-13
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