Human Capital and Market Access in the European Regions

Claude Diebolt and Ralph Hippe

Chapter Chapter 4 in Human Capital and Regional Development in Europe, 2022, pp 57-83 from Springer

Abstract: Abstract In a recent contribution, Redding and Schott (J Dev Econ 72:515–541, 2003) add human capital to a two-sector NEG model, highlighting that remoteness represents a penalty that gives disincentives to invest in human capital. But is this hypothesis consistent with long-term evidence? This chapter tests the persistence of this effect at the regional level in a historical setting. The results show that market access has a significant positive influence on human capital in OLS, Tobit and IV regression models. Thus, the chapter confirms the “penalty of remoteness” hypothesis for Europe in the long run.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:frochp:978-3-030-90858-4_4

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DOI: 10.1007/978-3-030-90858-4_4

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