Human Capital Externalities: A Sectoral-Regional Application for Spain.

Human capital externalities have been rejected recently in a number of papers, focused mainly on the US experience. However, these papers only contemplate the possibility of aggregate externalities within politically defined boundaries, states or cities. Given the nature of human capital externalities, their size and very existence should depend on the intensity of human interaction. Using microdata on Spanish workers, we have analyzed the existence of human capital externalities within each industry in each region and within establishments. The results show the existence of significant externalities, half of it outside the scope of individual firms, which in turn suggests the need of an active governmental role promoting schooling and human capital accumulation.Human capital, externalities, regions, industries.

Spain and Italy: Catching up and falling behind. Two different tales of productivity slowdown

The paper presents a first set of results for Spain and Italy using the EUKLEMS database. It emphasizes the different paths followed by the two countries over the last thirty five years, even though they still have many features in common. The motivation behind this paper is the poor productivity performance that the two countries have shown recently. The general overview details the factors underlying the process of per capita income convergence. Productivity performance is highlighted as the driving factor of convergence, deserving the greatest attention from different perspectives: the contributions of the different sources of productivity growth, which make use of the growth accounting framework; the impact of the structural change undergone by the two countries while moving from economies with still important shares of the agricultural sector to a more modern one; or the responsibility of poor productivity improvements in given industries. The changing composition of labour also deserves a detailed analysis because of its importance in productivity over the period analyzed.Growth, productivity, Growth accouting

The Economic Impact of Migration: Productivity Analysis for Spain and the United Kingdom

Increased internationalization over the past 20 years has meant that labour has become increasingly mobile, and whilst employment and earnings effects have been extensively analysed in host and source nations, the implications for firm and industry performance have been largely ignored. This paper explores the direct economic consequences of immigration on host nations’ productivity performance at a sectoral level. We consider its impact in two very different European countries, Spain and the UK. Whilst the UK has traditionally had a substantial in-flow of migration, for Spain, the phenomenon is much more recent. The paper provides an overview of the role played by immigration on per capita income, highlighting the importance of demographic differences. We then go on to analyze the role of migration on productivity using two different approaches: i) growth accounting methodology and ii) econometric estimation of a production function. Our findings indicate that migration has had very different implications for Spain and the UK, migrants being more productive than natives in the UK but less productive than natives in Spain. This may in part be a function of different immigration policies, particularly related to the skill requirements on entry, but also in part a feature of the host nations’ ability to ‘absorb’ foreign labour.Key words: migration, productivity, industries

The Economic Impact of Migration – Productivity Analysis for Spain and the UK

As a consequence of increased internationalization over the past 20 years labour has become increasingly mobile, and yet the implications for firm and industry performance have been largely ignored. This paper explores the direct economic consequences of immigration on host nations’ productivity performance at a sectoral level. We consider its impact in two very different European countries, Spain and the UK. Whilst the UK has traditionally had a substantial in-flow of migration, for Spain, the phenomenon is much more recent. The paper provides an overview of the role played by immigration on per capita income, highlighting the importance of demographic differences. We then go on to analyze the role of migration on productivity using two different approaches: i) growth accounting methodology and ii) econometric estimation of a production function. Our findings indicate that migration has had very different implications for Spain and the UK, migrants being more productive than natives in the UK but less productive than natives in Spain. This may in part be a function of different immigration policies, particularly related to the skill requirements on entry, but also in part a feature of the host nations’ ability to ‘absorb’ foreign labour.Migration, productivity

- CAPITAL HUMANO Y CONVERGENCIA REGIONAL

This paper analyzes the relationship between human capital and convergence with a model that takes into account the different effects of human capital accumulation on regional convergence. As an input, human capital produces convergence due to both decreasing returns and public intervention on education. As a determining factor of Total Factor Productivity (TFP) growth, it generates divergence when there exist regional differences in human capital stocks. The empirical analysis show that, over 1964-93 period, human capital has been an important sourceof regional net divergence in Spain. Consequently, the convergence rate has been relatively small. The results indicate the potential role of educational policy in order to achieve a spatially equilibrated growth. Este trabajo revisa la relación entre capital humano y convergencia a través de un modelo que permite analizar los diversos efectos de la acumulación de capital humano sobre la convergencia regional. Como input productivo, el capital humano genera convergencia entre las regiones debido tanto a la existencia de rendimientos decrecientes como a la intervención pública en materia educativa. Como determinante del crecimiento de la productividad total de los factores, genera divergencia si existen diferencias regionales en las dotaciones de este factor. El análisis empírico muestra que a lo largo del periodo 1964-1993 el capital humano ha sido una importante fuente neta de divergencia regional en España haciendo que la velocidad de convergencia registrada haya sido relativamente modesta. Los resultados apuntan al papel que la política educativa puede desempeñar como instrumento para lograr un crecimiento espacialmente equilibrado.Capital humano, convergencia, crecimiento. Human capital, convergence, economic growth.

CAPITAL HUMANO, ESTRUCTURA SECTORIAL Y CRECIMIENTO EN LAS REGIONES ESPAÑOLAS

This paper analyzes Spanish economic growth and the effect of interaction between human capital accumulation and sectoral structure. Data show significant differences in sectoral human capital stocks per worker for the period 1965-95. When tested, the effect of human capital, both as an input and as a determinant of total factor productivity (TFP) growth, varies greatly. In manufacturing, construction and services, we find a positive and significant effect, but in agriculture and energy the rise in workers¿ schooling levels seem to be just a problem of overeducation. Finally, human capital accumulation has made the transformation of the Spanish economy towards the most dynamic and productive sectors easier, promoting the aggregate TFP. Este trabajo analiza el crecimiento económico español con especial énfasis en la interacción entre acumulación de capital humano y dinámica sectorial. Se distinguen cinco sectores productivos para los que se constata la existencia de significativas diferencias en las dotaciones educativas a lo largo del periodo 1964-1995. Por otra parte, al analizar empíricamente el crecimiento regional, la influencia del capital humano en estos sectores, bien directamente como factor productivo, bien como determinante del crecimiento de la productividad total de los factores, varía considerablemente. En los sectores secundarios y terciarios la acumulación de capital humano parece haber impulsado el crecimiento, mientras que en los primarios la mejora de los niveles educativos parece constituir un simple fenómeno de sobrecualificación. Finalmente, la creciente formación de los ocupados parece haber facilitado la transformación del aparato productivo hacia los sectores más dinámicos y productivos aumentando de este modo la productividad total de los factores agregada.crecimiento, capital humano, regional growth, human capital, regional

CAPITAL HUMANO Y MOVILIDAD ESPACIAL DEL TRABAJO EN LA ECONOMÍA ESPAÑOLA

This paper analyzes the Spanish case, in which a significant degree of regional inequality exists along with scarce net migratory flows. Therefore, we consider spatial differences on human capital returns as a determinant of migration instead of per capita income or wage per worker, as empirical results show when analyzing interprovincial migration along 1964-93 period. Because a great deal of regional inequalities are due to different human capital stocks, the incentives for migration are weak also. So, we can not expect migration flows to contribute in a significant way to the regional convergence in Spain, which is subject to the ¿slow by nature¿ convergence of human capital stocks. Este trabajo analiza la situación española en la que se combina un notable nivel de desigualdad regional con flujos migratorios netos de escasa entidad. Para ello se considera que lo relevante en la decisión de emigrar son las diferencias espaciales en la retribución del capital humano en vez de renta per cápita o salario por trabajador, tal y como indican los resultados empíricos obtenidos al analizar las migraciones interprovinciales durante el periodo 1964-93. En la medida en que las diferencias regionales se deben a las distintas dotaciones de capital humano, los incentivos a la migración son igualmente escasos. Por consiguiente, no cabe confiar en que las migraciones contribuyan de modo importante a la convergencia espacial en España, que estaría condicionada por la propia convergencia en las dotaciones de capital humano, un proceso lento por naturaleza.Capital humano, migraciones Human capital, migrations

- SALARIOS REGIONALES Y DOTACIONES DE CAPITAL HUMANO

This paper analyses the regional wages in Spain and tests their relationship with the different regional human capital endowments, using an approach that takes into account the possible measurement error in human capital indicators. The results indicate that, when allowing for the possibility of regional differences in the utility provided by an equal wage, wages show a unitary elasticity respect to human capital. Therefore, with such a similar regional utility by unit of human capital, there would be neither incentives to migrate nor welfare gains to achieve through a higher hypothetical labour mobility. Este trabajo analiza los salarios regionales en España y contrasta su relación con las distintas dotaciones de capital humano de cada región. Para ello se utilizan técnicas que consideran la posibilidad de error de medida en la variable capital humano. Los resultados muestran que, una vez se considera la posibilidad de diferencias regionales en la utilidad que proporciona una misma retribución monetaria del capital humano, los salarios muestran una elasticidad unitaria respecto al capital humano. Por tanto, con una utilidad por unidad de capital humano similar a nivel regional, no habría incentivos a la emigración ni ganancias de bienestar a obtener de una hipotética mayor movilidad territorial de los recursos humanos.Capital humano, error de medida, salarios. Human capital, measurement error, wages.

- CRECIMIENTO Y ESTADOS ESTACIONARIOS REGIONALES: ESTABILIDAD Y FACTORES DETERMINANTES

According to neoclassical models, economies converge to their steady-states. In this paper we confirm that both significant differences among Spanish regions¿ steady-states and fastconvergence to them exist. We analyse their time stability over the period 1964-93 and their possible determinants. Our results show the variability of the relative regional steady-states and point to human capital as their main determinant instead of investment rate or population growth. En un marco neoclásico, la convergencia a sus respectivos estados estacionarios deviene uno de los principales factores de convergencia de las economías. En este trabajo, tras confirmar la existencia de diferencias significativas entre los estados estacionarios relativos de las regiones españolas y de una intensa convergencia hacia ellos, se analiza su estabilidad temporal a lo largo del periodo 1964-1993. También son investigados sus posibles factores determinantes. Los resultados muestran la variabilidad de los estados estacionarios regionales y señalan al capital humano como principal factor determinante frente a la tasa de inversión en capital físico o el crecimiento demográfico.Convergencia, estados estacionarios, capital humano Convergence, steady-states, human capital

- CONVERGENCE IN OECD COUNTRIES: TECHNICAL CHANGE, EFFICIENCY AND PRODUCTIVITY

The aim of this study is to analyze labor productivity convergence in the countries of the OECD over the period 1965-90. A non-parametric frontier approach is used to calculate the Malmquist productivity index. By breaking it down, the contribution to the growth of labor productivity of technical progress, of changes in efficiency, and of the accumulation of inputs per worker are quantified. Unlike other studies, the results obtained show that technical change has worked against labor productivity convergence, since it has always been greater in the countries with higher labor productivity. El trabajo tiene como objetivo básico analizar la contribución de las distintas fuentes del crecimiento a la convergencia en productividad del trabajo en los países de la OCDE en el periodo 1965-90. Más concretamente, y utilizando dos aproximaciones frontera distintas (índices de productividad de Malmquist y un enfoque de frontera estocástica), se distingue la contribución del cambio técnico y de los cambios de eficiencia a la convergencia en productividad del trabajo. Los resultados obtenidos contradicen los obtenidos en otros trabajos que utilizan aproximaciones no frontera a la medición de la productividad, rechazándose la existencia de convergencia tecnológica, dado que el progreso técnico ha sido mayor en los países con mayor productividad del trabajo.Convergencia, cambio técnico, eficiencia, índice Malmquist de productividad Convergence, technical change, efficiency, Malmquist productivity index