Human capital — defined as knowledge, experiences and skills of an individual — focuses on the importance of human capabilities. In contrast, human enterprise — defined as engaging in systematic, purposeful activity that may be daring or difficult — incorporates the important role of...

This paper provides first evidence on the social returns to education from both firm-level and regional human capital. Using panel data from German social security, both at an individual and aggregated at the plant and regional level, I estimate earnings functions incorporating measures of...