The phantom of the opera: Cultural amenities, human capital, and regional economic growth

Oliver Falck*, Michael Fritsch, Stephan Heblich

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

54 Citations (Scopus)

Abstract

We analyze the extent to which endogenous cultural amenities affect the spatial equilibrium share of high-human-capital employees. To overcome endogeneity, we draw on a quasi-natural experiment in German history and exploit the exogenous spatial distribution of baroque opera houses built as a part of rulers' competition for prestigious cultural sights. Robustness tests confirm our strategy and strengthen the finding that proximity to a baroque opera house significantly affects the spatial equilibrium share of high-human-capital employees. A cross-region growth regression shows that these employees induce local knowledge spillovers and shift a location to a higher growth path. (C) 2011 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)755-766
Number of pages12
JournalLabour Economics
Volume18
Issue number6
DOIs
Publication statusPublished - Dec 2011

Keywords

  • Cultural amenities
  • Regional economic growth
  • Human capital
  • Bohemians
  • QUALITY-OF-LIFE
  • PROPENSITY SCORE
  • COUNTRIES
  • COMPETITION
  • RENTS
  • WAGES

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