Identifying Human Capital Externalities: Theory with Applications
Antonio Ciccone and
Giovanni Peri ()
No 6, Working Papers from Barcelona Graduate School of Economics
The identification of aggregate human capital externalities is still not fully understood. The existing (Mincerian) approach confounds positive externalities with wage changes due to a downward sloping demand curve for human capital. As a result, it yields positive externalities even when wages equal marginal social products. We propose an approach that identifies human capital externalities whether or not aggregate demand for human capital slopes downward. Another advantage of our approach is that it does not require estimates of the individual return to human capital. Applications to US cities and states between 1970 and 1990 yield no evidence of significant average-schooling externalities.
Keywords: Human capital externalities; wages; Downward Sloping Labor Demand; Imperfect substitutability (search for similar items in EconPapers)
JEL-codes: O0 O4 R0 J3 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Identifying Human Capital Externalities. Theory with Applications (2007)
Journal Article: Identifying Human-Capital Externalities: Theory with Applications (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:6
Access Statistics for this paper
More papers in Working Papers from Barcelona Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().