Abstract Using panel data and employing instrumental variables we show that regional wage differences across German regions are partly attributable to localized human capital externalities. This finding is stable across different indicators for regional aggregate education and robust to...

In this paper, a survey is presented of the recent developments in two empirical literatures at the crossroads of labour and urban economics: studies about localised human capital externalities (HCE) and about the urban wage premium (UWP). After surveying the methods and main results of each of...

Inspired by the literature on the importance of career networks for the quality of labor market matches we investigate whether human capital externalities arise from higher job matching efficiency in skilled regions. Using two samples of highly qualified workers in Germany, we find that...

The paper sheds light on the impact of spatial agglomeration of human capital on individual wages in Western Germany. Using panel data it shows that regional wage differentials are to a large extent attributable to localized human capital externalities arising from the regional share of highly...

We test Krugman’s (1991) notion of risk sharing in pooled labor markets as one of the micro-foundations of agglomeration economies, i.e. we examine whether firms share risks from idiosyncratic and sector specific shocks through labor pooling. Estimating wage functions we find that job turnover...

Inspired by the literature on the role of local career networks for the quality of labor market matches we investigate whether human capital externalities arise from a higher job matching efficiency in skilled regions. Using two samples of highly qualified workers in Germany we find that an...

Local returns to scale in the labor market have been notoriously difficult to disentangle from increasing returns in the product market and from the spatial sorting of workers and firms as a source for regional variation in productivity. In this paper we use the introduction of high-speed rail...

The paper sheds light on the impact of spatial agglomeration of human capital on individual wages in Western Germany. Using panel data it shows that regional wage differentials are to a large extent attributable to localized human capital externalities arising from the regional share of highly...

Despite private investments exceeding two billion Euros and tax incentives of more than 500 million Euros, the market share of natural gas vehicles (NGVs) in Germany has lagged far behind expectations and behind market developments in other countries. With total cost of ownership being on...