Human capital and regional economic growth - Evidence from the dual approach

Theoretical contributions to the literature have stressed the role of human capital in promoting economic growth. However, the empirical exercises have provided mixed evidence on the real effect of such type of capital. Most of the evidence has been obtained by estimating growth equations or production functions using samples of (heterogeneous) countries. In this paper, we report empirical evidence on the effects of human capital in the sample of Spanish regions. As they are supposed to be more homogeneous economies from an institutional, social and economic perspective, we assume that the evidence provide in this paper is a more robust measure of the real effects of human capital in stimulating the take off of lagging economies. We departure from the traditional empirical approach as our estimates come from the dual framework. This easily allows us to get not only the aggregate return to human capital, but also some other important measures such as its shadow price, that is the willingness to pay for an extra year of education of firm’s employees, and the degree of complementariety/substitutability with other types of capital. Results suggest that human capital has exerted a significant effect in the Spanish regions, which is stronger in the less developed ones. It not only have a direct effect but an indirect one by compensating the mechanism of decreasing returns to physical capital. Important conclusions for the assessment and design of regional development policies can be derived from such results.

Decomposing differences in total factor productivity across firm size

This paper investigates the extent to which the gap in total factor productivity between small and large firms is due to differences in the endowment of factors determining productivity and to the returns associated with these factors. We place particular emphasis on the contribution of differences in the propensity to innovate and in the use of skilled labor across firms of different size. Empirical evidence from a representative sample of Spanish manufacturing firms corroborates that both differences in endowments and returns to innovation and skilled labor significantly contribute to the productivity gap between small and large firms. In addition, it is observed that the contribution of innovation to this gap is caused only by differences in quantity, while differences in returns have no effect; in the case of human capital, however, most of the effect can be attributed to increasing differences in returns between small and large firms.Total Factor Productivity; skilled labor; innovation; firm size; Oaxaca decomposition

DIFFERENCES IN TOTAL FACTOR PRODUCTIVITY ACROSS FIRM SIZE - A DISTRIBUTIONAL ANALYSIS

Productivity has been considered a key element for firms and economies to be more competitive. Several studies on productivity at a microeconomic level have found notable heterogeneity between firms. More concretely, differences in Total Factor Productivity (TFP) between large and small firms have been observed. Those differences might be caused by differences in the distribution of the factors determining the level of TFP across firms’ size, and by differences in the return to such factors. To assess to what extent the observed differences in TFP between large and small Spanish manufacturing firms are caused by the above-mentioned reasons we propose a methodology that, built on the traditional Oaxaca-Blinder decomposition, focuses the attention on the entire distribution of productivity. The TFP index used in our paper guarantees comparison of the level of productivity across firms in a given year and over time, and has been computed using the information in the Encuesta sobre Estrategias Empresariales (ESEE), a comprehensive survey of manufacturing firms in Spain from 1990 to 1999. Results confirm that the distribution of TFP in the large firms dominates that for the small firms, and how besides differences in the distribution of, for example, human capital and R&D expenditures across firms’ size, heterogeneity in returns between large and small firms play a major role in explaining differences in the distribution of TFP. Important policy issue are derived in connection with the possibility of increasing the aggregate productivity of the Spanish economy considering that the average firm size in Spain is smaller than in other European countries.

Regional variability in the impact of human capital on regional growth

The first objective of this study is to furnish new evidence concerning the aggregate profitability of the accumulation of human capital. In addition to the traditional measure of the return to human capital, combining the information on its shadow price with the social cost of providing education allows us to confirm the profitability of human capital investments as a tool for promoting economic growth. The possibility of obtaining estimations of these effects for each Spanish region enables us to empirically evaluate the amount of heterogeneity across economies in the effects of human capital. As a second objective, we provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital

Regional returns to physical capital: are they conditioned by educational attainment?

This paper provides novel empirical evidence of the indirect effect of educational attainment on regional economic growth, through its influence on the profitability of investment in physical capital. We test the hypothesis that the regional heterogeneity of the return to physical capital can be directly related to the existing heterogeneity in the educational attainment of workers. The results for the Spanish case support our hypothesis that the higher the educational attainment of workers the greater the returns on investment in physical capital. In fact, this effect seems to be sufficiently strong to have counterbalanced the traditional mechanism of decreasing returns to capital accumulation

Current Glacier Area in the Pyrenees: An Updated Assessment 2016

Producción CientíficaLos estudios de superficie glaciar en los Pirineos han informado de más de 2000 ha en 1850, 806,5 ha en la década de 1980 y 310,33 ha en 2008. En este trabajo hemos llevado a cabo una estimación actualizada (2016) de la superficie de los glaciares actuales en los Pirineos, a partir de imágenes satelitales contrastadas con observaciones “in situ” de los glaciares más representativos. Nuestros resultados dan una superficie glaciar de 242,06 ha para el año 2016. Esto implica una reducción del 88,25% desde 1850 y una rápida disminución desde la década de 1980, lo que confirma el acelerado declive durante el final del siglo XX y la primera década del siglo XXI

Does human capital stimulate investment in physical capital? Evidence from a cost system framework (WP)

The direct effect of human capital on economic growth has been widely analysed in the economic literature. This paper, however, focuses on its indirect effect as a stimulus for private investment in physical capital. The methodological framework used is the duality theory, estimating a cost system aggregated with human capital. Empirical evidence is given for Spain for the period 1980-2000. We provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital

Impacts of land abandonment and climate variability on runoff generation and sediment transport in the Pisuerga headwaters (Cantabrian Mountains, Spain)

Producción CientíficaThe Atlantic mountains of Spain are suffering a strong landscape change due to a widespread and intensive emigration to urban areas since the 1950s. This process, representative of global developments in an imminent future, is dominated by urban societies and leads to deep landscape changes in which crop fields and grasslands are abandoned and progressively covered by forest and shrubs. These dynamics have caused in turn a decrease in the runoff and a general slowdown of geomorphological processes. The impacts of land cover change have been simultaneous to an irregularity in precipitation and a significant increase of temperatures. With this background, this paper assesses in detail the impact of landscape change occurred over the last decades (twentieth and twenty-first centuries) on the water and sediment yield in the Pisuerga catchment headwaters (Cantabrian Mountains, N Spain). We analyzed the different components of Global Change in a catchment of 233 km2 extent, that has passed from 15 to 2 habitants/km2, from multiple data sources. Evolution of land cover was reconstructed from aerial photographs, remote sensing and other resources. The climatic parameters have been studied through meteorological stations, and the hydrological and sedimentological responses over time are based on available runoff data and sedimentological analysis. Our results show a significant decrease in water and sediment transport mainly driven by vegetation increase occurred in a non-linear way, more intense immediately after abandonment. This fact opens the opportunity to control more accurately water resources in Mediterranean catchments through land use management.Ministerio de Economía, Industria y Competitividad - Fondo Europeo de Desarrollo Regional (project CGL2015-68144-R)Ministerio de Educación y Formación Profesional (grant FPU13/05837

Mapping the potential distribution of frozen ground in Tucarroya (Monte Perdido Massif, the Pyrenees)

Producción CientíficaEste trabajo describe la metodología utilizada para cartografiar los suelos potencialmente helados en el valle de Tucarroya, en el Parque Nacional de Ordesa. Para cartografiar las formas asociadas a la presencia de hielo se combinó trabajo de campo, datos térmicos procedentes de sensores automáticos de temperatura del suelo y mediciones de la base del manto de nieve (BTS), así como variables predictivas obtenidas de un Modelo Digital de Elevaciones (MDE). La cartografía diferencia cuatro ambientes, suelo no congelado con actividad de la helada, suelos helados estacionales, permafrost posible y permafrost probable. El mapa revela una extensión del permafrost muy limitada, con escasez de formas asociadas. Solo se ha detectado por encima de los 2700 m de altitud en ambientes topográficos favorables, pendientessuaves y protegidos de la radiación solar. Los suelos helados estacionales son los ambientes más comunes y se desarrollan por encima de los 2500 m s.n.m., mientras los suelos no congelados,pero con heladas solo están presentes entre los 2570 y los 2750 m de altitud en laderas que reciben elevada radiación solarMinisterio de Economía, Industria y Competitividad - Fondo Europeo de Desarrollo Regional (projects CGL2015-68144-R / CGL2017-82216-R)Geoparque de Sobrarbe (project R- ADM15/57