CEF.UP – WiP Webinar

Friday – February 26^th, 2021 at 2:00 p.m.

“The Agglomerative Force of Education”

Jorge Saraiva – CEF.UP

Abstract:

“We find that, when skilled workers are allowed to choose their location, an economy with a higher human capital favours the agglomeration of economic activities and reduces the likelihood of a symmetric dispersion scenario. We explore the possibility that both skilled and unskilled populations remain unchanged while allowing skilled workers to increase their productivity. The choice of the productivity level turns out to be independent of spatial distribution and transportation costs. Education is higher, the higher the expenditure share in the industrial good is. Increases in education levels lead to positive externalities that affect the whole society.”