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Title: The Attentuation of Human Capital Spillovers: A Manhattan Skyline Approach

Citation Type: Miscellaneous

Publication Year: 2006

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Abstract: The impact of agglomeration and spatial concentration uponeconomic productivity has been the focus of many studies.Using estimatedwage equations and geographic data, this research focuses on the reduction ofagglomeration economies and human capital externalities. The analysis of the data allows researchers to evaluate the impact ofagglomeration distance upon labor productivity.While agglomeration isexamined using concentric rings from the workplace, productivity is measuredaccording to existing wages.Geological characteristics are alsoconsidered significant for understanding measurement error. Influential factors, such as education level, human capital, and the urbanwage premium, are considered.Previous literature regarding agglomeration,productivity, and wages is explored.The data set was primarily drawn fromthe 5% Integrated Public Use Microdata Series (IPUMS) from 2000, as well as2000 U.S. Census data. The findings of the paper indicate that evidence supporting an urban wagepremium exists. The analyses further suggest that human capital positivelyimpacts agglomeration. Further, a close proximity to college-educated workers is correlated with anincrease in productivity and wages; the proximity to less-educated workers iscorrelated with an opposite effect.The effect of human capital spilloversindicate a positive influence, extending as far as 50 to 100 miles. (AKP)

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1497854

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Authors: Rosenthal, Stuart S.; Strange, William C.

Publisher: University of Illinois at Urbana-Champaign

Data Collections: IPUMS USA

Topics: Population Data Science

Countries: United States