Estimating human capital externalitiesthe case of the spanish provinces, 1995-2010

  1. Walter García-Fontes 1
  2. Manuel Hidalgo 2
  1. 1 Universitat Pompeu Fabra

    Universitat Pompeu Fabra

    Barcelona, España


  2. 2 Universidad Pablo de Olavide

    Universidad Pablo de Olavide

    Sevilla, España


Revista de economía aplicada

ISSN: 1133-455X

Year of publication: 2016

Volume: 24

Issue: 71

Pages: 5-37

Type: Article

More publications in: Revista de economía aplicada


We estimate the strength of schooling externalities for Spanish provinces over the 1995-2010 period. Our empirical work employs both main approaches available in the literature, the Constant Composition approach and the Mincerian approach. Using data from the Continuous Sample of Working Records and analyzing empirically the effect of human capital stock changes on wages at the provincial level, we find that both methodologies yield significant externalities.

Funding information

Walter García-Fontes thanks partial support of grants ECO2014-55555-P and ECO2014-55555-P (Gobierno de España) and Manuel Hidalgo thanks grants PAI SEJ-246 (Gobierno de España) and P07-SEJ-02479 (Proyecto de Excelencia de la Junta de Andalucía).


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