Human Capital and Regional Wage Gaps

International audienceThis paper uses micro-level data to analyse the effect of human capital on regional wage differentials. The results for the set of Spanish regions confirm that they differ in the endowment of human capital, but also that the return that individuals obtain from it varies sharply across regions. Regional heterogeneity in returns is especially intense in the case of education, particularly when it is considered its effect on the employability of individuals. Those differences in endowments and, especially, in returns to human capital account for a significant portion of regional wage gaps