Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions

American Economic Review - Tập 94 Số 3 - Trang 656-690 - 2004
Enrico Moretti1
1Department of Economics, Bunche Hall, University of California-Los Angeles, Los Angeles, CA 90095 and National Bureau of Economic Research.

Tóm tắt

I assess the magnitude of human capital spillovers by estimating production functions using a unique firm-worker matched data set. Productivity of plants in cities that experience large increases in the share of college graduates rises more than the productivity of similar plants in cities that experience small increases in the share of college graduates. These productivity gains are offset by increased labor costs. Using three alternative measures of economic distance—input-output flows, technological specialization, and patent citations—I find that within a city, spillovers between industries that are economically close are larger than spillovers between industries that are economically distant.

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