Human Capital and Economic Activity in Urban America

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe examine the relationship between human capital and economic activity in U.S. metropolitan areas, extending the literature in two ways. First, we utilize new data on metropolitan area GDP to measure economic activity. Results show that a one-percentagepoint increase in the proportion of residents with a college degree is associated with about a 2 percent increase in metropolitan area GDP per capita. Second, we develop measures of human capital that reflect the types of knowledge within U.S. metropolitan areas. Regional knowledge stocks related to the provision of producer services and information technology are important determinants of economic vitality.

Metropolitan Spillover Effects and Economic Growth of Non-Metropolitan Areas: Evidence from Indiana Counties

“…The possible explanation is as follows: although metro and non-metro areas' economies are interrelated, two regions are still in competition for potential resources and investments to grow their own economies. As stated before, education and human capital are key endogenous variables of economic growth (Romer, 1986;Krugman, 1991;Lucas, 2000;Frenken et al, 2007;Abel & Gabe, 2011), for both metro and non-metro areas. An increasing K-12 school enrollment in the metro area, indicating a larger stock of potential human capital, will make it more favorable for potential resources and investments.…”

“…The importance of education and human capital has been widely tested as a key variable in the literature of economic growth (Romer, 1986;Krugman, 1991;Lucas, 2000;Frenken et al, 2007;Abel & Gabe, 2011). For example, Lucas (1988) stated that individuals might not capture all of the benefits of their own education and human capital, causing some benefits to spillover to their colleagues and coworkers to cause more extensive impacts to the whole firm, industry, and economy.…”

Shared Knowledge and the Coagglomeration of Occupations

“…Our occupational-based approach draws on other studies that have focused on the skills-and knowledge-based content of work (Gabe, 2009;Strange, 2009a, 2009b;Scott, 2009;Abel and Gabe, 2011). 3 knowledge requirements) in their jobs (Feser, 2003). This means that, for example, whereas input-output relationships-characterizing the amount of one good needed to produce another-might influence the settlement patterns of some firms, this determinant of industry agglomeration is less relevant to the study of occupations.…”

Shared Knowledge and the Coagglomeration of Occupations

“…Because higher values of this variable indicate a greater similarity in the knowledge profiles of occupations, we expect to find a positive relationship between it and the coagglomeration index. This is similar to the approach used by Feser (2003) and Abel and Gabe (2011). Along with the similarity in the types of knowledge required for a job, we expect other factors to influence occupational coagglomeration patterns. Given the often strong connection between certain types of occupations and industries, it is likely that jobs contributing to the same industry (e.g., actors, directors, camera operators, costume designers) will exhibit strong patterns of coagglomeration.…”

“…Our occupational-based approach draws on other studies that have focused on the skills-and knowledge-based content of work (Gabe, 2009;Strange, 2009a, 2009b;Scott, 2009;Abel and Gabe, 2011). 3 knowledge requirements) in their jobs (Feser, 2003). This means that, for example, whereas input-output relationships-characterizing the amount of one good needed to produce another-might influence the settlement patterns of some firms, this determinant of industry agglomeration is less relevant to the study of occupations.…”