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Identifying Human-Capital Externalities: Theory with Applications
Abstract
The identification of aggregate human-capital externalities is still not fully understood. The existing (Mincerian) approach confounds positive externalities with wage changes due to a downward sloping demand curve for human capital. As a result, the Mincerian approach yields positive externalities even when wages equal marginal social products. We propose an approach that identifies human-capital externalities, whether or not aggregate demand for human capital slopes downward. Another advantage of our approach is that it does not require estimates of the individual return to human capital. Applications to U.S. cities and states between 1970 and 1990 yield no evidence of significant average-schooling externalities. Copyright 2006, Wiley-Blackwell.
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Cites
On the mechanics of economic development
Lucas, R. E. (1988) · Journal of Monetary Economics · doi:10.1016/0304-3932(88)90168-7 · Cited by 24,085
Changes in Relative Wages, 1963-1987: Supply and Demand Factors
Katz, L. F., & Murphy, K. M. (1992) · The Quarterly Journal of Economics · doi:10.2307/2118323 · Cited by 4,793
Carneiro, P. M., & Heckman, J. J. (2003) · doi:10.2139/ssrn.434544 · Cited by 1,325
Cited by
Human Capital and Regional Development *
Gennaioli, N., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2013) · The Quarterly Journal of Economics · doi:10.1093/qje/qjs050 · Cited by 1,082
The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States
Glaeser, E. L., & Gottlieb, J. D. (2009) · Journal of Economic Literature · doi:10.1257/jel.47.4.983 · Cited by 1,082
Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions
Moretti, E. (2004) · American Economic Review · doi:10.1257/0002828041464623 · Cited by 1,079
Understanding the City Size Wage Gap
Baum-Snow, N., & Pavan, R. (2012) · The Review of Economic Studies · doi:10.1093/restud/rdr022 · Cited by 355
The identification of agglomeration economies
Combes, P.-P., Duranton, G., & Gobillon, L. (2011) · Journal of Economic Geography · doi:10.1093/jeg/lbq038 · Cited by 341
Metadata
- Authors
- CICCONE, A., & PERI, G.
- Venue
- Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2006-04
- Volume
- 73
- Issue
- 2
- Pages
- 381-412
- ISSN
- 0034-6527 (ISSN-L)
- 1467-937X
- OpenAlex
- W3021182017
- Cited by
- 368
- References
- 3
- FWCI
- 62.12
- Type
- journal article
- Language
- en
- Open access
- closed
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- CICCONE, A., & PERI, G. (2006). Identifying Human-Capital Externalities: Theory with Applications. Review of Economic Studies. https://doi.org/10.1111/j.1467-937x.2006.00380.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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