Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations

Heuermann, Daniel F.; Halfdanarson, Benedikt; Suedekum, Jens

doi:10.1177/0042098009352363

Cited by 38 publications

(31 citation statements)

References 65 publications

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“…There may also be external effects from human capital on other parts of the urban labour market, with skilled workers creating jobs for others both directly (through entrepreneurship or within firms) and indirectly (via their higher spending in the local economy) (Heuermann, Halfdanarson, & Suedekum, 2010;Kaplanis, 2010a).…”

Section: Control Variablesmentioning

confidence: 99%

Is There Trickle-Down from Tech? Poverty, Employment, and the High-Technology Multiplier in U.S. Cities

Lee

Rodríguez‐Pose

2016

Annals of the American Association of Geographers

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High-technology industries are seen as important in helping urban economies thrive, but at the same time they are often considered as potential drivers of poverty and social exclusion. However, little research has assessed how high-tech affects urban poverty and the wages of workers at the bottom of the pyramid. This paper addresses this gap in the literature and investigates the relationship between employment in high-tech industries, poverty and the labour market for non-degree educated workers using a panel of 295 Metropolitan Statistical Areas (MSAs) in the United States between 2005 and 2011. The results of the analysis show no real impact of the presence of high-technology industries on poverty. Yet there is strong evidence that tech-employment increases wages for nondegree educated workers and, to a lesser extent, employment for those without degrees. These results suggest that while tech employment has some role in improving welfare for non-degree educated workers, tech-employment alone is not be enough to reduce poverty.

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Section: Control Variablesmentioning

confidence: 99%

Is There Trickle-Down from Tech? Poverty, Employment, and the High-Technology Multiplier in U.S. Cities

Lee

Rodríguez‐Pose

2016

Annals of the American Association of Geographers

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“…2 We ignore that skill can also be seen as a characteristic of a person when it concerns his or her competences to fill a job. more education leads to a better economic position in terms of higher wages and lower probability of becoming unemployed (Heuerman et al, 2010, Moretti, 2004a, 2004b. The private internal rate of return to education is around 5-15%, i.e., an additional year of education of a worker leads to a 5-15% increase in his or her wage rate.…”

Section: Human Capital Externalities: What Mechanisms Are At Work?mentioning

confidence: 99%

“…Hence, when low educated workers interact with bettereducated ones, they become more productive and creative and can hence earn higher wages. There is a longstanding research line that is engaged in investigating these HCEs (see Lucas, 1988, and overviews in Heuerman et al 2010, Psacharopolous et al, 2002Moretti, 2010). At the same time, HCEs may also reflect, what we call, consumption externalities; i.e., the spending power of high educated or high skilled inhabitants (not necessarily only workers) has a positive effect on the income of inhabitants with a lower education or on a lower skilled job (Sassen, 2001).…”

Section: Human Capital Externalities: What Mechanisms Are At Work?mentioning

confidence: 99%

“…They find that both more high and more low skilled workers concentrate in dense areas rather than in less dense areas. Heuerman et al (2010) conclude in their literature review that studies of HCEs are still far from reaching a consensus, or, as Psacharapolous et al (2002: 4) mentioned, '…the results overall are inconclusive'. HCEs are the increases in total earnings resulting from a one-year increase in education (Acemoglu and Angrist, 2001).…”

Section: Introductionmentioning

confidence: 99%

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Human Capital Externalities: Effects for Low-Educated Workers and Low-Skilled Jobs

Broersma¹,

Edzes²,

Dijk

2015

Regional Studies

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Investments in human capital are essential themes in many policy programs. Besides the direct private returns of education, there is evidence of positive human capital externalities at the level of regions and firms. Our results show that both production and consumption externalities have positive effects on wages. Production externalities are transmitted at the level of firms and not at the regional level. For workers in low skilled jobs, consumption externalities dominate production externalities.Workers on low skilled jobs earn higher wages when working in co-operation with workers in high skilled jobs, while for low educated workers such co-operation with high educated workers is negative.JEL: J21, J24, J31, R23 1

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“…Estos estudios confirman que la concentración de trabajadores calificados explica las diferencias espaciales en ingresos. Particularmente, las externalidades del capital humano afectan de manera positiva los salarios de las grandes ciudades, lo que implica que sus salarios promedio sean considerablemente superiores a los de las demás unidades espaciales (Charlot y Duranton, 2004;Heuermann et al, 2010).…”

Section: Desigualdad Espacial De Ingresos Y Spatial Labor Sortingunclassified

Desigualdad espacial de ingresos en Chile y su relación con la concentración de capital humano

Espejo¹,

Paredes²

2015

El Trimestre

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RESUMENLa desigualdad espacial de ingresos en los países de América Latina es un tema que ha despertado un reciente interés académico. En particular, Chile se destaca mundialmente por sus elevadas tasas de desigualdad espacial e individual. En este artículo se analiza la desigualdad espacial de ingresos en Chile durante 1992-2011 evaluando el papel de la localización espacial del capital humano (o spatial labor sorting). Los resultados confirman que el capital humano no se distribuye aleatoriamente en el espacio sino que su concentración en los grandes centros urbanos afecta significativamente en la desigualdad de ingresos entre comunas. Estos resultados motivan al análisis sobre la dimensión espacial de la desigualdad de ingresos y sugiere políticas de equidad espacial orientadas a reducir la concentración espacial de capital humano avanzado. ABSTRACTThe spatial income inequality in Latin American countries is a recent academic affair. Particularly, the case of Chile highlights around the world because it has one of the highest individual and spatial inequality rates. This article analyzes the spatial income inequality in Chile during 1992-2011 evaluating the role of the spatial labor sorting through multilevel models. The findings show that human capital doesn't allocate randomly across the space, but its spatial concentration at the biggest urban centers impacts significantly the income inequality between counties. These findings motivate the discussion about spatial dimension of the inequality and suggest that policymakers should consider ways to spread human capital throughout the nation as an alternative to reduce spatial inequality.

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Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations

Cited by 38 publications

References 65 publications

Is There Trickle-Down from Tech? Poverty, Employment, and the High-Technology Multiplier in U.S. Cities

Is There Trickle-Down from Tech? Poverty, Employment, and the High-Technology Multiplier in U.S. Cities

Human Capital Externalities: Effects for Low-Educated Workers and Low-Skilled Jobs

Desigualdad espacial de ingresos en Chile y su relación con la concentración de capital humano

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