Skilled human capital accretion, skilled wages and the geography of growing early-stage businesses

Leonidas Hernández, Félix Modrego and Miguel Atienza

Spatial Economic Analysis, 2023, vol. 18, issue 4, 552-574

Abstract: This article investigates the relationships among skilled human capital, skilled wages, and growing early-stage (GE) business activity at the level of functional regions in Chile, and assesses the role of external and local skilled human capital accretion. Based on theories of occupational-choice and heterogeneous entrepreneurship in economics, we estimate count-data econometric models of the regional number of growing early-stage businesses that account for the endogeneity of skilled wages. Skilled human capital accretion increases regional growing early-stage businesses activity, while skilled wages deter it. Changes in local skilled human capital explain regional differences in growing early-stage businesses activity, whereas the effect of changes in external skilled human capital is less clear.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:taf:specan:v:18:y:2023:i:4:p:552-574

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DOI: 10.1080/17421772.2023.2200483

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