The Role of Human Capital in Urban System Structure and Development: The Case of Italy

Abstract

The presence of and accessibility to information, mainly created inside competence and power circuits, and the presence of infrastructure to circulate it within and between areas, as exemplified by the endowment of human capital activating them, shape the structure and evolution of the urban system. Four specific hypotheses articulate this statement and are by and large supported by empirical analysis. The data base contains census data (1961, 1971, 1981) on Italian provinces referring to professional skills, employment in innovative industries and employment by control status. A cluster analysis is performed on skills data. The general result of the analysis on human capital satisfies the expectations. Moreover, the distribution and dynamics of human capital explain both the generally backward position of the South and the differences in production structure and functional control within the rest of Italy.

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“…In a comparable study of the role of human capital in an urban system's structure, Pompili (1992) argues that skilled labour is a strong factor in attracting certain activities, including economic and financial ones, not only to individual cities but also to the nation as a whole. A city can positively enhance its competitiveness by improving the level of its education (Kresl, 1995).…”

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