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Human Capital Externalities and Growth of High- and Low-Skilled Jobs
The author analyzes the impact of human capital on local employment growth for the case of West Germany (1977-2002). Findings reveal robust evidence that skilled cities grow faster than unskilled ones, but the need not indicate localized human capital externalities are at work.
Link
ftp://repec.iza.org/RePEc/Discussionpaper/dp1969.pdf