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Regional Measures of Human Capital in the European Union


Christian Dreger


German Institute for Economic Research (DIW Berlin); European University Viadrina Frankfurt (Oder); Institute for the Study of Labor (IZA); Chinese Academy of Social Sciences (CASS)

Georg Erber


German Institute for Economic Research (DIW Berlin) - Competition and Consumers

Daniela Glocker


German Institute for Economic Research (DIW Berlin)


IZA Discussion Paper No. 3919

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.

Number of Pages in PDF File: 31

Keywords: human capital indicators, regional growth

JEL Classification: I20, O30, O40, O52

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Date posted: January 19, 2009  

Suggested Citation

Dreger, Christian, Erber, Georg and Glocker, Daniela, Regional Measures of Human Capital in the European Union. IZA Discussion Paper No. 3919. Available at SSRN: http://ssrn.com/abstract=1329557

Contact Information

Christian Dreger (Contact Author)
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
European University Viadrina Frankfurt (Oder) ( email )
Frankfurt (Oder)
Germany
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Chinese Academy of Social Sciences (CASS) ( email )
Beijing, 100732
China
Georg Erber
German Institute for Economic Research (DIW Berlin) - Competition and Consumers ( email )
Mohrenstraße 58
Berlin, 10117
Germany
+493089789697 (Phone)
+493089789103 (Fax)
HOME PAGE: http://www.diw.de/english/staff/27338.html?uid=gerber
Daniela Glocker
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
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