Social Returns to Education: Evidence from Italian Local Labour Market Areas

Local Economies and Internationalization in Italy Conference, p. 251, 2003

30 Pages Posted: 12 Oct 2012

See all articles by Alberto Dalmazzo

Alberto Dalmazzo

University of Siena - Department of Economics

Guido de Blasio

Bank of Italy

Date Written: November 20, 2003

Abstract

The paper estimates social returns to education in the Italian local labor markets. It shows that there is an important correlation between local human capital and average wages after controlling for individual characteristics. Estimated social returns to education range from 2 to 3%, whereas the private returns amount roughly to 6–7%. To find some support about causality running from local human capital to wages, the paper performs a number of robustness checks. It shows that: the estimated social returns are unlikely to be driven by spatially correlated omitted variables; they survive to the introduction of individual- and territorial-level variables; they are not due to imperfect substitutability across workers or spatial sorting; they are robust to IV techniques that deal with both local human capital and individual human capital endogeneity.

Suggested Citation

Dalmazzo, Alberto and de Blasio, Guido, Social Returns to Education: Evidence from Italian Local Labour Market Areas (November 20, 2003). Local Economies and Internationalization in Italy Conference, p. 251, 2003, Available at SSRN: https://ssrn.com/abstract=2160460 or http://dx.doi.org/10.2139/ssrn.2160460

Alberto Dalmazzo (Contact Author)

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy
+39 0577 232 697 (Phone)

Guido De Blasio

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

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