Human Capital Externalities: A Sectoral-Regional Application for Spain

Lorenzo Serrano Martinez

No E2003/06, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: Human capital externalities have been rejected recently in a number of papers, focused mainly on the US experience. However, these papers only contemplate the possibility of aggregate externalities within politically defined boundaries, states or cities. Given the nature of human capital externalities, their size and very existence should depend on the intensity of human interaction. Using microdata on Spanish workers, we have analyzed the existence of human capital externalities within each industry in each region and within establishments. The results show the existence of significant externalities, half of it outside the scope of individual firms, which in turn suggests the need of an active governmental role promoting schooling and human capital accumulation.

Keywords: Human capital; externalities; regions; industries. (search for similar items in EconPapers)
JEL-codes: D62 I20 J30 R10 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2003
New Economics Papers: this item is included in nep-geo and nep-mic
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Citations: View citations in EconPapers (3)

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