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

Broersma, Lourens; Edzes, Arjen; Dijk, Jouke van

doi:10.1080/00343404.2015.1053446

Cited by 14 publications

(11 citation statements)

References 23 publications

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“…The firm effects are robust in both models and help explain underqualification of the low educated. This finding is in line with studies looking into interactions between high-educated and low-educated workers in explaining personal differences in salary; they also found that the firm level is more important in general (Broersma et al, 2010;Canton, 2009).…”

Section: Firm Characteristicssupporting

confidence: 90%

“…However, the interaction between high-educated and low-educated workers can also be explained from a more positive point of view. The presence of highly educated workers is often related to all kinds of positive spillover effects in the region (eg, Rodríguez-Pose and Tselios, 2010) and for the firm (Broersma et al, 2010;Canton, 2009). Low-educated workers can benefit from a higher abundance of better jobs and consumption effects.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…In addition, although it is possible in all types of firms, informal learning probably more often occurs in smaller firms since relationships between workers tend to be closer (Boschma, 2005), which is especially profitable for low-educated workers. From studies by Canton (2009) and Broersma et al (2010), we know that, in general, characteristics of firms are more important than labor market effects in explaining workers' success in terms of wages.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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Underqualification as an Opportunity for Low-Educated Workers

Hamersma

Edzes

Dijk

2015

Environ Plann C Gov Policy

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Improving the labor market position of low-educated workers is one of the most im portant goals of regional labor market policy. Underqualification, meaning holding a job at a higher level than expected based on one's formal education, can be-under certain conditions-a favorable position from both an individual and a policy perspective. In this study we used repeated cross-sections of data about Dutch workers from 1996 to 2006 to relate the chances of underqualification to personal, firm, and labor market characteristics. Briefly we found that, for low-educated workers, firm and personal characteristics are more important than regional characteristics in explaining underqualification. Higher regional unemployment rates lower the chances of being underqualified. Working in smaller firms or firms with many high-skilled jobs has a strong positive effect on the chances of attaining higher level jobs, while working in firms with many highly educated workers lowers these chances. Women and nonnatives are less often underqualified, whereas older workers are more often underqualified. Gaining more insight into the determinants of underqualification is important for developing more effective policy measures that aim to improve the labor market position of the most vulnerable groups in the labor market.

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Section: Firm Characteristicssupporting

confidence: 90%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

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Underqualification as an Opportunity for Low-Educated Workers

Hamersma

Edzes

Dijk

2015

Environ Plann C Gov Policy

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“…The relationship of highly skilled, and highly educated workers to unemployment is expected to be negative. This implies that highly skilled labour and those with high education attainments find it easier to get jobs as chances of employment improve with education (Becker, 1964;Broersma et al, 2013;Güçlü, 2017). In this study, this variable is defined as the shares of 'illiterate', 'below intermediate', 'intermediate', 'above intermediate', 'university level and above' to the working age population in the region, respectively.…”

Section: Choice Of Variablesmentioning

confidence: 99%

Regional unemployment in Egypt: Spatial panel data analysis

Al-Ayouty

Hassaballa

2020

African Development Review

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Egypt's rate of unemployment averaged 11% over the period 1993-2018. Although this has motivated abundant research, it has focused on nationwide unemployment, with little attention to unemployment at the regional (i.e., governorate) level. Indeed, there are wide disparities in unemployment among governorates. Moreover, high unemployment governorates may be clustered together in a way that yields spatial autocorrelation. The present paper therefore fills this gap in empirical literature by analysing unemployment by region using a spatial panel data model (for 27 governorates over the 2006-2016 period). It establishes the existence of (positive) spatial dependence in regional unemployment. Regional unemployment is further found to be affected by low levels of education among the governorates' populations (illiterates, and holders of intermediate and above intermediates) pointing to a mismatch between the skills demanded and the skills supplied at the governorate level. Though services have the highest share in average employment across governorates (0.64), followed by agriculture (0.26), neither of the two indicators (proxies) of activity mix is found to be statistically significant. Other variables expected to affect regional unemployment were not statistically significant (female and youth unemployment, despite high prevalence of both female and youth unemployment across the governorates of Egypt). Policy implications include: the pooling of efforts between neighbouring governorates to address unemployment; matching leading activities in the governorates with the ranks of the unemployed; using apprenticeship schemes; increasing female labour force participation; and promoting private sector job creation.

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“…However, greater insight is needed into the underlying mechanism. Broersma et al (2015) show, for example, that, for the Netherlands, an important component of the wage spillover effect results from interactions between individuals within firms rather than interactions between individuals co-located within a region.…”

Section: Human Capital and Regional Economic Developmentmentioning

confidence: 99%

Human capital spillovers in Dutch cities: consumption or productivity?

Venhorst

2016

Ann Reg Sci

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We study the recursive relationship between the ability of Dutch cities to attract recent graduate human capital to their labour-or housing markets and a city's skills structure, using a comprehensive dataset and a novel operationalisation strategy. We disentangle production and consumption spillovers by separating out human capital employed in a city's labour market and human capital present in a city's resident population, respectively. We do so for both the recent graduates flowing into Dutch cities to find work and a residential location, as well as for the incumbent workers and population. We control for the effects of a city's skills endowments, its (non-) economic characteristics and those of other relevant cities. We find positive effects of a relatively strong graduate labour market inflow on the share of higher and scientific-level jobs. Production spillovers therefore predominantly occur among the higher skilled. Contrary to the higher educated incumbent population, which appears to prefer high skilled services, recent graduate inflows to residential areas have positive effects on the share of jobs requiring lower and medium skills. Consumption spillovers from graduate residential inflows thus occur between higher and lower skilled. JEL Classification

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

Cited by 14 publications

References 23 publications

Underqualification as an Opportunity for Low-Educated Workers

Underqualification as an Opportunity for Low-Educated Workers

Regional unemployment in Egypt: Spatial panel data analysis

Human capital spillovers in Dutch cities: consumption or productivity?

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