Individual earnings and educational externalities in the European Union

Andrés Rodríguez-Pose and Vassilis Tselios

No 2009-07, Working Papers from Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales

Abstract: This paper examines whether differences in educational externalities affect individual earnings across regions in the EU. Using microeconomic data from the European Community Household Panel, the analysis relies on spatial economic analysis in order to determine to what extent differences in individual earnings are the result of (a) the educational attainment of the individual, (b) the educational attainment of the other members of the household he/she lives in, (c) the educational endowment of the region where the individual lives, or (d) the educational endowment of the neighbouring regions. The results highlight that, in addition to the expected positive returns of personal educational attainment, place-based regional and supra-regional educational externalities generate significant pecuniary benefits for workers. These findings are robust to the inclusion of different individual, household, and regional control variables.

Keywords: individual earnings; educational attainment; externalities; households; regions; Europe (search for similar items in EconPapers)
Date: 2009-07-23
New Economics Papers: this item is included in nep-edu, nep-eec, nep-geo, nep-lab and nep-ure
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Citations: View citations in EconPapers (4)

Published in Regional Studies 46(1), January 2012: 1-151

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