KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Inside the Black Box of Regional Development - human capital, the creative class and tolerance
(), Charlotta Mellander
() and Kevin Stolarick
Abstract: While there is a general consensus on the importance of
human capital to regional development, debate has emerged around two key
issues. The first involves the efficacy of educational versus occupational
measures (i.e. the creative class) of human capital, while the second
revolves around the factors that effect its distribution. We use structural
equation models and path analysis to examine the effects of these two
alternative measures of human capital on regional income and wages, and
also to isolate the effects of tolerance, consumer service amenities, and
the university on its distribution. We find that human capital and the
creative class effect regional development through different channels. The
creative class outperforms conventional educational attainment measures in
accounting for regional labor productivity measured as wages, while
conventional human capital does better in accounting for regional income.
We find that tolerance is significantly associated with both human capital
and the creative class as well as with wages and income.
Keywords: Human Capital; Creative Class; Tolerance; Wages; Income; Regional Development; (follow links to similar papers)
JEL-Codes: J24; O30; R10; R20; (follow links to similar papers)
50 pages, April 18, 2007
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