Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities
Inspired by the literature on the role of local career networks for the quality of labour market matches we investigate whether human capital externalities arise from a higher job matching efficiency in skilled regions. Using two samples of workers in Germany we find that an increase in the regional...
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| Format: | Article |
| Language: | English |
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Politecnico di Torino
2012-10-01
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| Series: | European Journal of Spatial Development |
| Subjects: | |
| Online Access: | https://journals.polito.it/index.php/EJSD/article/view/204 |
| _version_ | 1797846671386738688 |
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| author | Daniel F. Heuermann |
| author_facet | Daniel F. Heuermann |
| author_sort | Daniel F. Heuermann |
| collection | DOAJ |
| description | Inspired by the literature on the role of local career networks for the quality of labour market matches we investigate whether human capital externalities arise from a higher job matching efficiency in skilled regions. Using two samples of workers in Germany we find that an increase in the regional share of highly qualified workers by one standard deviation is associated with between-job wage growth of about five per cent and with an increase in the annual probability of a job change of about sixty per cent. Wage gains are incurred only by workers changing jobs within industries. We find highly qualified workers in skilled regions to respond to these wage differentials by changing jobs more often within rather than between industries. Taken together, these findings suggest that human capital externalities partly arise because workers in skilled regions have better access to labour market information, which allows them to capitalize on their industry-specific knowledge when changing jobs. |
| first_indexed | 2024-04-09T17:58:44Z |
| format | Article |
| id | doaj.art-2b792e2d80fd45bfab4e6b6a80e5ec1a |
| institution | Directory Open Access Journal |
| issn | 1650-9544 |
| language | English |
| last_indexed | 2024-04-09T17:58:44Z |
| publishDate | 2012-10-01 |
| publisher | Politecnico di Torino |
| record_format | Article |
| series | European Journal of Spatial Development |
| spelling | doaj.art-2b792e2d80fd45bfab4e6b6a80e5ec1a2023-04-14T09:46:55ZengPolitecnico di TorinoEuropean Journal of Spatial Development1650-95442012-10-0110412710.5281/zenodo.5139742204Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital ExternalitiesDaniel F. Heuermann0Institute for Labour Law and Industrial Relations, University of TrierInspired by the literature on the role of local career networks for the quality of labour market matches we investigate whether human capital externalities arise from a higher job matching efficiency in skilled regions. Using two samples of workers in Germany we find that an increase in the regional share of highly qualified workers by one standard deviation is associated with between-job wage growth of about five per cent and with an increase in the annual probability of a job change of about sixty per cent. Wage gains are incurred only by workers changing jobs within industries. We find highly qualified workers in skilled regions to respond to these wage differentials by changing jobs more often within rather than between industries. Taken together, these findings suggest that human capital externalities partly arise because workers in skilled regions have better access to labour market information, which allows them to capitalize on their industry-specific knowledge when changing jobs.https://journals.polito.it/index.php/EJSD/article/view/204human capital externalitiesjob matchingcareer networksspatial wage differencesskilled region |
| spellingShingle | Daniel F. Heuermann Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities European Journal of Spatial Development human capital externalities job matching career networks spatial wage differences skilled region |
| title | Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities |
| title_full | Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities |
| title_fullStr | Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities |
| title_full_unstemmed | Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities |
| title_short | Job Matching Efficiency in Skilled Regions: Evidence on the Microeconomic Foundations of Human Capital Externalities |
| title_sort | job matching efficiency in skilled regions evidence on the microeconomic foundations of human capital externalities |
| topic | human capital externalities job matching career networks spatial wage differences skilled region |
| url | https://journals.polito.it/index.php/EJSD/article/view/204 |
| work_keys_str_mv | AT danielfheuermann jobmatchingefficiencyinskilledregionsevidenceonthemicroeconomicfoundationsofhumancapitalexternalities |