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The role of firm-level and regional human capital for the social returns to education - Evidence from German social security data

Lookup NU author(s): Professor Nils BraakmannORCiD

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Abstract

This paper provides first evidence on the anatomy of human capital externalities arising from both firm-level and regional human capital. Using panel data from German social security records, both at an individual and aggregated at the plant and regional level, I estimate earnings functions incorporating measures of regional and firm-level human capital while controlling for various types of unobserved heterogeneity. The results suggest that the firm-level share of high-skilled workers generates positive, although small social returns to education for low-skilled and skilled workers but not for the high-skilled. This finding is in line with learning based theories of human capital externalities. Some estimates also suggest negative social returns for the regional shares of low-skilled workers. No such effects are found for the firm-level shares of low-skilled workers and the regional shares of high-skilled workers.

Publication metadata

Author(s): Braakmann N

Publication type: Report

Publication status: Published

Series Title: Working Paper Series in Economics

Year: 2009

Pages: 1-38

Source Publication Date: 01-04-2009

Report Number: 126

Institution: University of Luneburg, Institute of Economics

Place Published: Luneburg

URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_126_Upload.pdf

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