2006
DOI: 10.1111/j.1467-937x.2006.00380.x
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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 approac… Show more

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Cited by 301 publications
(275 citation statements)
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References 39 publications
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“…There is nonetheless good evidence of imperfect substitutability across skill groups. See for instance Ciccone and Peri (2006) for a related application to us states. The first difficulty in this case is that employment in each skill group now matters to determine wages in an area (that is, B akt becomes a function of several measures of employment).…”
Section: Estimating Workers' Skillsmentioning
confidence: 99%
“…There is nonetheless good evidence of imperfect substitutability across skill groups. See for instance Ciccone and Peri (2006) for a related application to us states. The first difficulty in this case is that employment in each skill group now matters to determine wages in an area (that is, B akt becomes a function of several measures of employment).…”
Section: Estimating Workers' Skillsmentioning
confidence: 99%
“…Troisièmement, notre spécification suppose une substituabilité parfaite entre salariés (en particulier, à l'intérieur des entreprises), même si des articles montrent que ce type de complémentarité entre salariés existe (Ciccone et Peri, 2006, Moretti, 2004. Nous laissons ce problème de côté étant donné qu'il est difficile de prendre en compte la complémentarité dans l'analyse et que ce n'est pas le sujet de notre étude.…”
Section: Estimation De La Productivité Des Salariésunclassified
“…Using plant-level productivity data, he finds a spillover effect on productivity in the range of 0.5-0.7% for a one-percentage point increase in the college share by comparing firms in high-and low-skilled cities (Moretti, 2004c). Ciccone and Peri (2006) also use aggregated data on the regional level, as they criticize the individual approach as being not feasible to identify externalities due to the non-inclusion of downward sloping aggregate demand for human capital.…”
Section: External Effects Of Education: Theory and Existing Evidencementioning
confidence: 99%