The spatial extension of human capital spillovers in the service sector: evidence from Brazilian cities

Abstract

This research proposal aims to generate and analyze evidence on the spatial extent of human capital externalities on the productivity of service sector workers in Brazilian metropolitan regions. The idea is that workers for which their workplace is located closeto other highly skilled workers can be more productive due to knowledge spillovers. These spillovers are attenuated with distance. We will use a unique geocoded database for all firms in the service sector in the Brazilian metropolitan regions and the exogenous expansion of the share of the population with a college degree as an instrument to deal with endogeneity concerns. (AU)