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Reinventing the Skilled Region: Human Capital Externalities and Industrial Change

Heuermann, Daniel F.


Abstract

Bridging the gap between the literatures on industrial change and human capital externalities we investigate whether a broad regional skill base and dynamic labor markets are complementary determinants of local productivity and wages. On the level of regional industries in Germany we find strong evidence for such complementarity. In fact, a high average level of education turns out to be crucial ...

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