Regional Measures of Human Capital in the European Union

32 Pages Posted: 20 Oct 2008

See all articles by Christian Dreger

Christian Dreger

European University Viadrina Frankfurt (Oder); IZA Institute of Labor Economics; Chinese Academy of Social Sciences (CASS)

Georg Erber

European Productivity Research Center (EPRC)

Daniela Glocker

German Institute for Economic Research (DIW Berlin)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2008

Abstract

The accumulation of the human capital stock plays a key role to explain the macroeconomic performance across regions. However, despite the strong theoretical support for this claim, empirical evidence has been not very convincing, probably because of the low quality of the data. This paper provides a robustness analysis of alternative measures of human capital available at the level of EU NUTS1 and NUTS2 regions. In addition to the univariate measures, composite indicators based on different construction principles are proposed. The analysis shows a significant impact of construction techniques on the quality of indicators. While composite indicators and labour income measures point to the same direction of impact, their correlation is not overwhelmingly high. Moreover, popular indicators should be applied with caution. Although schooling and human resources in science and technology explain some part of the regional human capital stock, they cannot explain the bulk of the experience.

Keywords: Human capital indicators, SOEP, regional growth

JEL Classification: I20, O30, O40, O52

Suggested Citation

Dreger, Christian and Erber, Georg and Glocker, Daniela, Regional Measures of Human Capital in the European Union (October 2008). SOEPpaper No. 137, Available at SSRN: https://ssrn.com/abstract=1285563 or http://dx.doi.org/10.2139/ssrn.1285563

Christian Dreger (Contact Author)

European University Viadrina Frankfurt (Oder) ( email )

Frankfurt (Oder)
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Chinese Academy of Social Sciences (CASS) ( email )

Beijing, 100732
China

Georg Erber

European Productivity Research Center (EPRC) ( email )

Daniela Glocker

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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