Local Human Capital and External Economies: Evidence for Spain, Paper presented at the 39th

Abstract It is generally assumed that external economies generated by human capital accumulation increase factor productivity. However, as human capital is accumulated in an unequal way in the territory, productivity improvements (and wages) will be different among territories. Following this line of reasoning, if there is enough labour mobility, wage differences will induce migratory movements that would concentrate population in a given geographical area and increasing housing rents until the net advantage of residing and working in different places is equal. Following Encuesta de Presupuestos Familiare