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The phantom of the opera: Cultural amenities, human capital, and regional economic growth

Oliver Falck, Michael Fritsch () and Stephan Heblich

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: We analyze the extent to which endogenous cultural amenities affect the spatial equilibrium share of high-human-capital employees. To overcome endogeneity, we draw on a quasi-natural experiment in German history and exploit the exogenous spatial distribution of baroque opera houses built as a part of rulers’ competition for prestigious cultural sights. Robustness tests confirm our strategy and strengthen the finding that proximity to a baroque opera house significantly affects the spatial equilibrium share of high-human-capital employees. A cross-region growth regression shows that these employees induce local knowledge spillovers and shift a location to a higher growth path.

Date: 2011
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Citations: View citations in EconPapers (82)

Published in Labour Economics 6 18(2011): pp. 755-766

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Journal Article: The phantom of the opera: Cultural amenities, human capital, and regional economic growth (2011) Downloads
Working Paper: The Phantom of the Opera: Cultural Amenities, Human Capital, and Regional Economic Growth (2010) Downloads
Working Paper: The Phantom of the Opera: Cultural Amenities, Human Capital, and Regional Economic Growth (2010) Downloads
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