Local human capital externalities and wages at the firm level: Evidence from Italian manufacturing
Massimiliano Bratti, DEMM, Università degli Studi di Milano, Italy ; Roberto Leombruni, Department of Economics and Statistics “Cognetti de Martiis”, Università degli Studi di Torino, Italy
Economics of Education Review Volume 41, Number 1, ISSN 0272-7757 Publisher: Elsevier Ltd
We exploit presumably exogenous variation in the availability of college-educated workers at the province level produced by a reform that increased the supply of higher education to estimate human capital production externalities for Italian manufacturing firms. We show that when the potential endogeneity of local human capital is addressed, the elasticity of white-collar workers’ wages with respect to the local college share is around 0.1, while we find no evidence of a positive effect of local human capital on blue-collar workers’ wages.
Bratti, M. & Leombruni, R. (2014). Local human capital externalities and wages at the firm level: Evidence from Italian manufacturing. Economics of Education Review, 41(1), 161-175. Elsevier Ltd.