Regional data on wages for the Spanish economy show that workers who live in developed regions earn more than workers in other regions. Literature on external economies provides a possible explanation of why firms do not move from these regions to others where wages are lower. Previous studies...

In the last decade, different studies have tried to contrast empirically the existence of a relationship between local human capital and the productivity of a given territory, and the possible presence of external economies. The most common result has been the finding of a positive relationship...