Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations

Benedikt Halfdanarson (), Daniel F. Heuermann () and Jens Suedekum
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Benedikt Halfdanarson: Statistics Iceland

No 3493, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: In this paper we survey the recent developments in two empirical literatures at the crossroads of labor and urban economics: Studies about localized human capital externalities (HCE) and about the urban wage premium (UWP). After surveying the methods and main results of each of these two literatures separately, we highlight several interrelations between them. In particular we ask if HCE can be interpreted as one fundamental cause of the UWP, and we discuss if one literature can conceptually learn from the methods that are used by the other one.

Keywords: local labor markets; agglomeration; human capital externalities; urban wage premium (search for similar items in EconPapers)
JEL-codes: J31 J61 R23 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-hap, nep-lab and nep-ure
Date: Written 2008-05
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