Human Capital Externalities and Employment Differences across Metropolitan Areas of the U.S.

Winters, John V (2010): Human Capital Externalities and Employment Differences across Metropolitan Areas of the U.S.

Abstract

It has been well documented that employment outcomes often differ considerably across areas. This paper examines the extent to which the local human capital level, measured as the share of adults with a college degree, has positive external effects on labor force participation and employment for U.S. metropolitan area residents. We find that the local human capital level has positive externalities on participation for women, but an inconsistent effect on participation for men. However, the local human capital level reduces unemployment for both men and women. We also find that less educated workers generally receive the largest external benefits.

• Item Type: MPRA Paper
• Language: English
• Keywords: employment; unemployment; human capital externalities; agglomeration
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics

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