50
NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN MANUFACTURING: EVIDENCE FROM PLANT-LEVEL PRODUCTION FUNCTIONS Enrico Moretti Working Paper 9316 http://www.nber.org/papers/w9316 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2002 I am indebted to Dan Ackerberg, Michael Ash, Sandy Black, David Card, Janet Currie, Robert Dekle, Paul Devereux, Joe Hotz, Phillip Leslie, David Levine, Darren Lubotsky, Marco Manacorda, Charles Mullin and seminar participants at Berkeley and USC for useful comments on this and previous drafts. The research in this paper was conducted while the author was a Census Bureau research associate at the California Census Research Data Center. Research results and conclusions expressed are those of the author and do not necessarily indicate concurrence by the Bureau of Census. This paper has been screened to ensure that no confidential data is revealed. A previous version of this paper circulated under the title: “Workers’ Education, Externalities and Technology Adoption: Evidence From Plant-Level Production Functions”, CLE Working Paper 21, November 1999. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research. © 2002 by Enrico Moretti. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source.

NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

NBER WORKING PAPER SERIES

HUMAN CAPITAL SPILLOVERS IN MANUFACTURING:EVIDENCE FROM PLANT-LEVEL PRODUCTION FUNCTIONS

Enrico Moretti

Working Paper 9316http://www.nber.org/papers/w9316

NATIONAL BUREAU OF ECONOMIC RESEARCH1050 Massachusetts Avenue

Cambridge, MA 02138October 2002

I am indebted to Dan Ackerberg, Michael Ash, Sandy Black, David Card, Janet Currie, Robert Dekle, PaulDevereux, Joe Hotz, Phillip Leslie, David Levine, Darren Lubotsky, Marco Manacorda, Charles Mullin andseminar participants at Berkeley and USC for useful comments on this and previous drafts. The research inthis paper was conducted while the author was a Census Bureau research associate at the California CensusResearch Data Center. Research results and conclusions expressed are those of the author and do notnecessarily indicate concurrence by the Bureau of Census. This paper has been screened to ensure that noconfidential data is revealed. A previous version of this paper circulated under the title: “Workers’ Education,Externalities and Technology Adoption: Evidence From Plant-Level Production Functions”, CLE WorkingPaper 21, November 1999. The views expressed herein are those of the authors and not necessarily those ofthe National Bureau of Economic Research.

© 2002 by Enrico Moretti. All rights reserved. Short sections of text, not to exceed two paragraphs, maybe quoted without explicit permission provided that full credit, including © notice, is given to the source.

Page 2: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

Human Capital Spillovers in Manufacturing:Evidence From Plant-Level Production FunctionsEnrico MorettiNBER Working Paper No. 9316October 2002JEL No. J0, I2, O4

ABSTRACT

I assess the magnitude of human capital spillovers in US cities by estimating plant-level productionfunctions. I use a unique firm–worker matched dataset, obtained by combining the Census ofManufacturers with the Census of Population. After controlling for a plant’s own human capital,plant fixed effects, and industry–specific and state specific transitory shocks, I find that the outputof plants located in cities that experience large increases in the share of college graduates rises morethan the output of smaller plants located in cities that experience small increases in the share ofcollege graduates. Several specification tests indicate that the estimated effect is unlikely to becompletely spurious. First, within a city, spillovers between plants that rarely interact are zero,while spillovers between plants that often interact are significant. Second, density of physical capitalin a city outside a plant has no effect on a plant’s productivity. Third, most of the estimatedspillover comes from high-tech plants. For low-tech plants, the spillover is virtually zero. Theestimated productivity differences between cities with high and low levels of human capital matchremarkably well differences in labor costs between cities and high and low level of human capital.Consistent with a model that includes both standard general equilibrium forces and spillovers, theproductivity gains generated by human capital spillover are offset by increased labor costs.

Enrico MorettiDepartment of EconomicsUCLA405 Hilgard AvenueLos Angeles, CA 90095-1477and [email protected]

Page 3: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��� ����������� ������

���! �"$#�%&"$'!(*)+"$,.-�/0)�-&1�#!"$,2(*)3(2-�45 �"768"$1�(94�-�(9:;)�<!-='>1�-&4?-&#!%�-A@$:�-&B>�!%7"C)�-&B�D5@E1�FC-&1?4� G"$FC-&45@$)3<!-�15D5@E1�FC-&1?4 �@$1�-H'!1?@IB>�!%�)�(9JE-CK�LM"$1?4�<N"C,2,�OQPSRETEUWV�(24�"C �@E#>XY)3<!-HZN1?4?)�)�@A1�-&%�@EXE#!(9[&-H)�<N"C)�4?@I%�(\"$,I(2#W)3-�13"$%�)3(2@$#!4�"$ 8@E#!XD]@$1�F$-�1�4�%&1?-7"C)�-�,2-&"$1�#!(9#!X^@$'!'_@$1?)3�>#!(9)�(2-&48)3<N"�)`-&#!<!"$#!%&-a'!1?@IB>�!%�)�(9J0(9)b6$Kdc��>%7"$4eOQPSTERERWV8"$1�X$�!-&4G)�<N"C)<f�! G"C#e%&"$'!(*)+"$,�-�/0)3-�1�#N"$,9(9)�(2-&4=(2#g)3<>-h:i@$1� j@$:],9-7"$1?#!(2#>X�4�'!(9,2,9@�J$-&1?4Y G"76Mk_-l,2"$1�XE-m-&#!@E�>XE<�)3@�-�/I'!,2"$(2#,2@E#>X�n01��>#^(2#>%&@E 8-hB!(9o_-&1?-&#!%�-&4pkq-�)bD5-&-�#r1�(2%+<s"$#!B^'q@0@E1t%�@E�!#W)31?(2-�4&K�ub#^)3<>-�)b60'!(2%&"$,v,2-7"C1�#!(9#!Xw 8@0B!-&,yx(2#!B>(9J0(2B!�!"$,24z"$�!X$ �-�#f)�)3<!-�(21z<f�! G"C#p%7"$'>(9)+"C,f)�<!1�@$�!XE<p'N"C(21?D{(94�-v �-�-�)�(2#!XE4zD{(9)�<m 8@E1�-v4�Ff(2,9,2-�Bm#!-�(2XE<fkq@E1�4B!�!1?(2#!XlD{<!(9%+<|)�<!-�6�-}/>%+<!"$#!XE-~(2B!-&"$4tO��A,\"$-�4�-�1APSTETET>x!�$@SJ$"C#!@SJI(9%~"$#!Bw��@EkaPST$RETWV�K

�� 8'!(21?(2%&"$,�-�JI(9B!-&#>%&-G(9#!B!(9%7"C)�-&4A)3<N"�)m4?'!(2,9,2@SJE-�1�4� G"76�kq-8(2 8'_@E1�)+"$#W)A(9#�4?@E 8-�<!(���)�-&%+<e(2#!B!�>4?)31?(2-�4&K�N@E1�-�/>"$ 8'!,2-CxWk!(2@C)3-&%+<>#!@E,2@$X$6mZN1? �4�"C1�-� 8@E1�-�'!1?@IB>�!%�)�(9JE-{(*:_,9@I%&"C)3-�Bh#!-7"$1�,2"$1�XE-]1�-&4?-7"$1?%+<G�!#>(9JE-�1�4?(9)3(9-&4O��;�!%+FC-&1�x��A"$1�kW6s"$#!B��]1�-�D]-�1wP7TETERWV}Ks��"�)3-&#W)�%&(*)+"C)�(2@E#!4p"$1�-` 8@E1�-G,2(2FC-&,*6^)3@a%�@E �-�:i1�@E �)�<!-`43"C �-4?)3"C)3-~@E1� �-�)31�@$'_@E,9(9)3"$#`"$1?-7"G"C4�)�<!-t@$1�(2X$(2#N"C)�(2#!Xm'N"C)3-�#W)lOy�E"Co;-Cx.��1�"���)3-�#0kq-&1?X`"$#!BM��-�#!B!-&1?4�@E#^PSTETE�WV}K��(2#>B!(2#!X$4�(2#m��,2"$-&4?-&1z"$#!BpLM"$1�-�Oy�$UEU>P�V�"$1?-�%&@E#!4?(24�)3-&#W)�D{(9)3<t"{ �@0B!-&,ED{<>-&1�-v(2#>B!(9J0(2B>�N"$,24�"C%&�f�!(21?-�4�Ff(2,9,24kW6�(9#W)3-&1�"$%�)�(2#!XAD{(*)3<8@E#!-�"$#!@$)�<!-&1�x>"C#!B�B>-&#!4?-=�!1?kN"$#�"$1�-&"$45(9#!%&1?-7"$4?-�)�<!-{'!1�@$kN"$k!(9,2(9)b6m@$:�(9#W)3-&1�"$%�)�(2@E#;K���v-�)&xqB>-&4�'>(9)3-�4?(2XE#!(*ZN%7"C#f)�'q@E,2(9%�6�(2 8'!,2(9%7"C)�(2@E#>4&xf)3<!-�1�-�(24{,2(*)�)�,2-=4�604?)3-� G"�)3(2%�-� �'!(91�(9%7"$,_-�J0(2B!-�#!%&-t@E#�)3<!- G"CXE#!(9)��!B!-H@C:;<f�! �"$#h%7"$'>(9)+"C,!4�'!(9,2,9@�J$-&1?4&K��Y#!,*6p1?-&%&-�#W)3,96p<N"7JE-�4�@E 8-{"$�>)�<!@E1�4v"C)?)3-� �'>)�-&Bl)3@�-�4?)3(9 G"�)3-)3<!-h4?(2[&-h@$:]4�'!(9,2,9@�J$-&1?4Y:i1�@E �-&B!�!%&"C)3(9@E#ekf6g%&@E 8'N"$1?(2#!X�)�<!-8D]"$XE-�4�@$:H@$)�<!-&1�D{(24?-84?(2 8(2,2"$1�(9#!B!(*JI(9B!�N"$,94D{<!@hD]@E1?F`(2#�%&(*)3(9-&4H@E1{4�)+"C)�-&4�D{(9)�<|B>(9o_-&1�-�#W)="7J$-&13"CXE-t,9-�J$-&,24�@C:�-�B!�!%7"�)3(2@$#�K��

ub#l)�<!(24�'N"C'_-�1&xWu�)3"$F$-�"A 8@E1�-HB>(21�-�%�)v"$'>'!1�@W"C%+<8)�@Y)3<!-{-&4�)3(9 G"C)�(2@E#m@$:;<f�! �"$#h%7"C'!(9)3"$,>-}/I)�-&1?#N"$,2(*)3(9-&4"$#!Bp:i@0%&�!4�@$#m)3<!-�'>1�@0B!�!%�)�(9J0(9)b6~@$:q �"$#f�>: "$%�)3�!1?(2#!XY'>,\"$#W)34�K���<!-�(9B!-7"�(24��f�!(*)3-H4?(2 8'!,2-CK�u�:q-}/I)�-&1?#N"$,2(*)3(9-&4-�/I(24�)7xfD]-�4�<>@E�!,2B�4�-�-�)�<N"C)v'!,\"C#f)�45,9@I%&"C)3-�Bh(2#8%&(9)�(2-�4�D{(9)3<�"�<!(2XE<8,2-�JE-�,q@C:�<f�! �"$#�%&"$'!(*)+"$,N%&"$#�'>1�@0B!�!%&-"~X$1�-7"�)3-&1�@E�I)3'!�>)vD{(9)�<l)3<!-�43"$ 8-{(2#!'>�>)34�)3<!"$#�@C)3<!-�1?D{(24?-�4?(2 8(2,2"$1�'!,2"$#W)34�,2@0%7"�)3-&Bh(9#8%�(9)�(2-&4�D{(*)3<�"�,9@SD,2-�JE-&,I@$:N<f�! �"$#p%&"$'!(9)3"$,�K��z@=)3-�4?)�)3<!(94�<W60'_@$)�<!-&4?(24�xWu�-&4?)�(2 �"C)3-v'!,2"$#W)�,9-�JE-�,I'>1�@0B!�!%�)�(2@E#t:i�!#!%�)�(2@E#>4��!4?(2#!X"M�!#!(9�f�!-GZN1? lnfD5@E1?F$-&1t G"�)3%+<!-�BrBN"C)+"C4�-�)&x�@Ek>)3"$(2#>-&BskW6�%&@E pk>(2#!(9#!X|)�<!-�¡]-�#!4��!4l@C:�LM"$#f�>: "$%�)3�!1?-&1?4D{(9)�<|)�<!-t¡]-&#!4?�!4�@C:��z@E'!�!,2"C)3(9@E#�K

�N@E1v-7"C%+<�'!,\"C#f)]"$#!BG%&(9)b6$x>u�B!-�ZN#!-=)�<!-=@SJ$-&13"C,2,q,2-�J$-&,q@$:�<f�! �"$#�%&"$'!(9)3"$,.(2#8)3<!-�%&(9)b68kW68%7"$,9%&�!,2"C)3(9#!X)3<!-a'q-&1?%&-&#W)3"$XE-a@$:t%&@E,9,2-&X$-g-&B!�>%7"C)�-&B¢D5@E1?F$-&1?4w(9#£)3<!-a%�(9)b6¤D{<>@�D5@E1�F¤@E�>)34?(2B!-g)�<!-a'!,\"C#f)&K¦¥�:§)�-&1%&@E#W)�1�@E,9,2(2#>X]:i@E1�"�'!,\"C#f)&¨�4�@SD{#~<f�! G"C#t%&"$'!(9)3"$,�x&u_ZN#!B�)3<!"C)�)3<!-�'!1?@IB>�!%�)�(9J0(9)b6=@$:0'!,\"$#W)�4z,9@I%&"C)3-�BA(2#�%&(*)3(9-&4

©Qª áÅÌAÒñâ»Ò�Û�ÝpãpØÚàOÒ�ÎÐÏOÙzÍ1ÌAÏuÌAÏHÑ�ãzàOáßÒ�ÎÐó}Ò�Û�« �?���&¬�­ªÛÂÒ�ï`Õ�Û»Ô!ÔÂàHÌAÔ;ÎÐÏHØ�Õ�Í�Ò ï`Ò�Û4Ø�ÌAïOÎÐÔJÌ'àHÌ�âZÜ�ÛÂÕ�ö;Ï�ó�Ì�âÆÔJÒ�Û4ÎßÏuØ�Î÷ÔJÎÐÒñâZö;ÎÐÔÂàuàOÎßÜ�àÎßÏOÎÐÔÂÎÅÌAáQàzéOÍ1ÌAÏ°Ø�ÌAïOÎÐÔJÌ�áwÎÐÏuÔÂàHÒ@ï`Õ8âÆÔÂÿ�ö4ÌAÛ4ïRÒ�ÛJÎÐÕpÑwô® ãzÒ�Ò�ݱó}Õ�Û>ÒqìOÌ�ͯïHáÐÒ�ݱê)ÌAé`ØÚ௫ �?����°�­qÝ�×¾ØqÒ�Í�Õ�Ü�áßéÇÌAÏHÑÇ×)ÏHÜ�ÛJÎßâ»Ôa«i�?�����&­sÝ�çZÎÅØ�ØqÕ�ÏOÒ ÌAÏHÑÇë®Ò�ÛÂÎl«9��±�±&��­sÝ�Þ�Õ�ÛJÒqÔ»ÔJÎ

«}ó}Õ�ÛÂÔÂàHØ�Õ�Í�ÎÐÏHÜ&­sô

P

Page 4: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

)3<N"�)H-�/I'q-&1?(2-&#>%&-A(2#>%&1�-&"$4�-�4H(2#�)3<!-Y@SJ$-&13"C,2,q,2-�J$-&,_@$:�<f�! G"C#�%7"$'>(9)+"C,q1?(24?-&4H 8@E1�-{)3<!"$#�)3<!-�'!1�@0B!�!%�)3(*JI(*)b6@$:v@$)3<>-&1?D{(94�-l4?(2 8(2,\"C1�'!,2"$#W)34Y,9@I%&"C)3-�B�(2#�%�(9)3(9-&4�D{<!-&1?-h)�<!-l@SJE-�13"$,9,�,2-�JE-&,�@$:v<0�> G"$#�%&"$'!(*)+"$,�B!@I-�4A#!@$)%+<N"$#!X$-$K���<!-�F$-�6h-&%&@$#!@E 8-�)31?(2%�(94�4��>-�(9#8%�@E 8'N"$1�(9#!XY)3<>-�'>1�@0B!�!%�)�(9J0(9)b6m@$:�'>,\"$#W)34�"C%&1�@$4�4v �-�)31�@$'_@E,9(9)3"$#"$1�-&"$4�D{(*)3<lB!(*o;-�1�-&#W)�@�J$-&1�"$,2,I,2-�J$-&,94�@$:.<f�! �"$#l%7"$'>(9)+"C,I(94�)3<>-H'_@$4�4�(9k!,2-5'!1�-�4�-�#!%&-{@$:.�!#>@Ek!4�-�1?J$-&Bh: "$%�)�@E1�4)3<N"�)m �"76�13"$(94�-h'!1?@IB!�>%�)3(*J0(9)b6e"$#!B�"C)?)313"C%�)m"| 8@E1�-h-�B!�!%7"�)3-&B^,\"$kq@E1Y:i@E1?%&-h)3@w"|%�(9)b6EKGu�)m(94~'q@E4?4�(2k>,2-)3<N"�)� �@$1�-�'!1�@0B!�!%�)3(9J$-Y'!,2"$#W)34�"$1?-=,9@I%&"C)3-�B�(2#�%&(9)�(2-�45D{(9)�<`"mkq-�)?)3-&1]-&B!�!%&"C)3-�B�,\"$kq@E1�:i@E1�%�-�:i@E151�-7"C4�@E#!4(2#!B>-&'q-&#!B!-�#W)=@$:�<f�! �"$#w%&"$'!(*)+"$,_4�'!(9,2,2@SJ$-&1�4�K

¥²kq-&#!-�Z!)p@C:]�!4?(2#!Xw,2@E#>XE(9)��!B!(2#!"$,�x_'!,\"$#W)��b,2-�JE-�,�BN"C)+"�(24A)�<N"C)~uY%7"C#^B!-&"$,�D{(9)�<�4?@E �-8@$:5)3<!-8 �@$4?)1�-�,2-�JC"$#W)]-&#!B!@$XE-&#!-�(9)b6G"$#!B`4?-&,2-�%�)�(9J0(9)b68(24?4��!-�4&K´³��568,9@I@EFf(9#!Xm"�)H%+<N"$#>XE-&4H@SJ$-&1H)3(9 �-Cxfu�%&@E1?1�-&%�)H:i@E1v'_-�1�� G"C#!-&#W)5�!#!@Ek!4?-&1�JE-&B`%+<!"$13"$%�)3-�1�(24�)3(9%&4v@$:�'!,2"$#W)345"$#!B�%&(9)�(2-�4�)�<N"C)v 8(2XE<W)vk!(\"C45"�4�(9 �'>,2-&1�%�1�@E4?4���4�-&%�)3(9@E#N"$,4�'q-&%�(9ZN%&"C)3(9@E#�Kµu�)w(24�4�)3(2,9,Y'q@E4�4?(2k!,9-a)�<N"C)�)3(9 �-}��JC"$1�6I(9#!Xr'!1?@IB!�>%�)3(*J0(9)b6¶4?<!@I%+Ff4�"C1�-a%&@E1?1�-�,\"C)�-&B·D{(9)3<%+<N"$#!X$-&4Y(9#M)3<!-t@SJE-&1�"$,2,z,2-�JE-�,�@$:�<0�> G"$#M%7"$'!(*)+"$,�(9#g"$#�"C1�-7"IK=�N@E1{-�/>"$ 8'!,9-$xq(9:v¸I@$�>)3<!-�1�#�4�)+"C)�-&4�)�<N"C)<N"7JE-A,9@�D£,2-�J$-&,_@$:�'!1�@0B!�!%�)3(*JI(*)b6�"C)5)�<!-Ykq-&XE(9#!#!(9#!Xm@$:;)3<!-Y'q-&1?(2@0B�xf%7"C)�%+<`�!'�x>"$#!B�)3<>(24v �@0B!-&1?#!(2[&"C)3(9@E#'!1�@0%&-�4�4v(2#l)3�>1�#�"C)�)�13"$%�)34v"~kq-�)?)3-�1v-�B!�!%&"C)3-�BG,\"Ck_@E1�:i@E1�%�-{)�@~)�<!-�¸I@E�>)�<�xW)3<!-�#�)�<!-{-&4?)�(2 �"C)3-�Bh4�'!(9,2,2@SJ$-&1D{(2,9,�kq-t)�@I@�,2"$1�X$-$K=�z@�,9-&4�4?-&#e"$#W6|:i-7"$1�)3<N"C)=@SJE-&1�"$,2,�%&@E,9,2-�XE-t4?<N"$1?-p(24�%&@E1?1�-&,2"C)3-�BMD{(9)�<g)3(9 �-}��JC"$1?60(9#!X�!#!@Ek>4�-&1�JE-�Bw: "$%�)3@E1?4&x!u�%&@$#f)�1�@E,_:i@E1]4�)+"C)�-!¹�(2#!B!�>4?)31�6�¹�6$-7"$1�-�o_-&%�)34&KvubB!-�#f)�(9ZN%&"C)3(9@E#`%&@$ �-�4HkW6�%&@$ �'N"C1��(2#!X~%+<N"$#>XE-&45@�J$-&1v)3(2 8-{(2#h)3<!-�'!1?@IB!�>%�)3(*J0(9)b6h@$:;'!,\"$#W)�4v)�<N"C)]"$1�-{(2#h)3<>-=43"C �-{4?)3"C)3-="$#!B�(2#!B!�>4?)31�6Ex0k!�>)(2#�B!(*o;-�1�-&#W)�%&(*)3(9-&4&K

��J$-&#�"C:§)3-�1A%&@E#W)31?@E,2,9(2#!X8:i@E1A'!,2"$#W)YZ>/I-&Be-�o_-&%�)34&xz(2#>B!�!4?)�1?6En04?'_-�%&(9Z!%h)�13"$#>4�(9)�@E1?6w4�<>@I%+Ff4t"$#!Ba4?)3"C)3-4�'q-&%�(9ZN%h)31�"$#!4�(*)3@E1�6�4�<>@I%+Ff4&x�(9)�(94~4�)3(9,2,�'q@E4�4?(2k!,9-p)3<N"�)t'!"$1?)~@$:v)3<!-8%&@$1�1�-�,\"C)�(2@E#�kq-�)bD5-&-�#r'!,\"C#f)�4&¨�'!1?@C�B!�!%�)3(9J0(*)b6M"C#!Bg"$X$XE1�-�XW"C)3-~<f�! �"$#g%7"C'!(9)3"$,�1�-�ºN-&%�)34Y%+<N"C#!XE-&4=(2#M�>#!@Ek!4?-&1?J$-&Ba%+<N"$1�"$%�)�-&1?(24?)�(2%�4=@$:�%�(9)�(2-&4�Ku�%7"$#`#!@C)H%&@$ �'!,9-�)�-&,96h1?�!,2-�@E�>)5)3<!(94]'q@E4�4?(2k!(9,2(9)b6$K��]�I)Hu�'!1�@SJ0(2B>-=:i@E�!154�'q-&%&(*ZN%7"�)3(2@$#�%+<!-&%+Ff4�)3@t:i�!1?)�<!-&1(2#WJE-�4?)�(2XW"C)�-A)3<!-AJC"$,2(9B!(9)b68@$:� m6`"C4�4��> �'>)�(2@E#>4&K

��(21�4�)7xfu�)3-�4?)5D{<!-�)�<!-&1])�<!-=4�)3@0%+F�@C:;»N¼0½�¾�¿�À�Á$Â$%7"$'!(*)+"$,.(9#�"t%�(9)b68@E�>)�4�(9B!-="t'!,\"$#W)5(245"$4�4?@I%�(\"C)�-&B8D{(9)3<(2#!%�1�-&"$4�-�B|'>1�@0B!�!%�)�(9J0(9)b68(9#G)3<!-='!,\"$#W)&K�u�:z m6G-�4?)�(2 �"C)3-�@$:z<f�! G"C#�%7"$'>(9)+"C,_4?'!(2,9,2@SJE-�1�4H"C1�-Y4?'!�!1�(9@E�!4�x>@E1(9:z)3<!-�6`%7"C#wkq-�-�/I'!,\"C(2#!-�BwkW6�"$X$XE,2@E 8-&1�"C)3(9@E#�-�o;-�%�)34�@$)�<!-&1H)�<N"$#|<0�> G"$#|%7"C'!(9)3"$,�-�/0)�-&1�#!"$,2(*)3(2-�4&x0)3<!-�#ut �"76^ZN#>BÃ)�<N"C)l 8@E1?-�'!1�@0B!�!%�)3(*JE-`'!,2"$#W)34h"$1?-�,2@0%7"C)�-&Br(9#Ã"$1�-&"$4pD{(9)�<r<!(2XE<>-&1pB!-�#!4�(*)b6r@$:�'!<W604�(9%7"$,%7"$'>(9)+"C,�K��Y#�)3<>-A%&@E#W)31�"$1?6$x!(9:� t6G-�4?)3(9 G"�)3-&4H"$1�-Y%&"$'>)��!1�(9#!Xl@E#!,*6G<f�! �"$#`%7"C'!(9)3"$,;-}/I)�-&1?#N"$,2(*)3(9-&4&xf)3<>-&1�-(24t#!@�1�-&"$4�@E#�D{<f6^'!<W604�(2%&"$,]%&"$'!(*)+"$,v(2#r"w'!,\"$#W)t4�<!@$�!,2Brkq-G%�@E1�1?-&,\"�)3-&B�D{(9)3<^'!1�@0B!�!%�)3(9J0(*)b6�(9#s@$)�<!-&1'!,\"C#f)�4&K�u�ZN#>BG)3<N"�)])3<>-=@SJE-�13"$,9,_4�)3@0%+F�@$:�'><f604?(2%7"C,_%&"$'!(9)3"$,q(2#�"~%&(*)b6�@$�>)34?(2B!-="m'!,\"C#f)5<N"$4]#!@m-�o;-�%�)�@E#

Ä í¾Ò�ÏHÑpÒ�ÛJâÂÕ�Ï�«9�}±�±��3­4Îßâ¾ÔÂàHÒ�øHÛÚâ»Ô�ÔJÕ�Ò�â»ÔÂÎßÍ1Ì�ÔJÒ�ÒqìzÔJÒ�ÛJÏHÌAáßÎ÷ÔJÎÐÒñâ¾Õ�Ï�ïOÛJÕpÑpéHØsÔJÎÐæzÎÐÔÆä°éHâÂÎÐÏOÜ�áÐÕ�ÏOÜ�ÎÐÔÂé`ÑpÎÐÏ`ÌAá­ïOáßÌ�Ï8Ô áßÒ�æ�Ò�á®ÑOÌ�ÔÚÌOôõZäzïOÎßØ�ÌAáßáÐä�ÝpÕAÔJàOÒ�Û)Ì�épÔÂàOÕ�ÛJâ4à`Ì�æ�Ò éHâ»ÒñÑ�ØqÎÐÔÆä�ÿ¢ÎßÏHÑpéHâ»ÔÂÛJä�ØqÛJÕ�âJâ»ÿ¢âÂÒ�ØqÔÂÎßÕ�ÏHÌ�á`ÌAÜ�Ü�ÛJÒ�Ü8Ì�ÔÂÒ ÑOÌ�ÔÚÌOô�

Page 5: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

"8'>,\"$#W)7¨´4�'!1?@IB!�>%�)3(*J0(9)b6EK¸0-&%&@$#!B�x0u�)3-�4?)�D{<!-�)3<!-�1v)�<!-� �"$XE#>(9)3�>B!-H@$:;4�'!(9,2,2@SJ$-&1�4�kq-�)bD5-&-�#�(2#>B!�!4?)�1�(9-&4�B!-&'q-&#>B!45@$#8)�<!-&(91�,2-�J$-&,

@$:v(2#W)3-�13"$%�)3(9@E#�KYu�:vu�:i@E�!#!Bg)�<N"C)A4?'!(2,9,2@SJE-�1�4Ykq-�)bD5-&-�#�(9#!B!�!4�)31?(2-&4�)3<N"C)=<N"$1?B!,96w(2#W)3-�13"$%�)YD5-&1�-h"C4Y,\"$1?XE-"$4mkq-�)bD5-&-�#r(2#!B>�!4?)�1�(2-�4~)�<N"C)~@$:§)�-&#^(9#W)3-&1�"$%�)&x�)�<!-&#^)�<N"C)~D]@$�!,2B�(2#!B!(9%7"C)�-l)3<N"C)~ m6a-�4?)�(2 �"C)3-�4t@$:])3<!-4�'!(9,2,9@�J$-&1lD5-&1�-w%&@E#W)3"$ �(9#N"C)�-&BÃkW6Ã%&(9)b6W��D{(2B!-|'!1�@0B!�!%�)3(*JI(*)b6r4�<>@I%+Ff4&K¤up�!4�-|(2#>'!�>)�nf@E�>)3'>�>)h)+"$k!,9-&4l)3@ �-&"$4��>1�-m(9#W)3-&1�"$%�)�(2@E#|kq-�)bD5-&-&#�(9#!B!�!4�)31?(2-&4�K���<!-m(9#!'!�>)��b@E�I)3'!�>){)3"$k!,2-�4�4?<!@SDd<!@SDd(2#!B>�!4?)�1�(2-�4�'>1�@SJ0(2B!-(2#!'>�>)])�@!x0"$#!B��!4?-Y@E�>)�'!�>)5:i1�@E |xf-7"$%+<�@C)3<!-�1&K�¥=%�%&@E1?B!(2#>Xt)3@~)3<!(94] 8-7"$4?�!1�-CxI �"$#f�>: "$%�)3�!1?(2#!Xt(2#W)3-�13"$%�)34 �@$1�-`D{(9)�<ÆÅE4?-&1�JI(9%&-�4�Å�)�<N"$#�D{(9)3<�Å$ZN#!"$#!%&-w"$#!B�1�-&"$,{-&4�)+"C)�-&Å^kq-&%&"$�!4?-w(*)��>4�-&48 8@E1�-�(2#>'!�>)34l:i1?@E ÅE4�-�1?J0(2%�-&4?Å8)�<N"$#`:i1�@E ÇÅ$ZN#!"$#!%&-~"$#>B`1�-7"C,�-&4�)+"C)�-&Å!KvÈ�4?(2#!Xp)�<!(24�B>-�ZN#!(*)3(9@E#�x0uvZN#>B�)�<N"C)&x�É�¿§Êi¼0¿§Ë�Á�À�¿§Êy½�x4�'!(9,2,9@�J$-&1?4�k_-�)bD]-�-&#G'>,\"$#W)34�)�<N"C)�@C:§)3-&#h(9#f)�-&1�"$%�)v"$1?-�4�(9XE#!(9Z!%7"$#W)7xED{<>(2,2-]4�'!(9,2,2@SJ$-&1�4�k_-�)bD]-�-&#G'>,\"$#W)34�)�<N"C)13"$1?-&,*6�(2#W)�-&13"C%�)�"$1�-A m�!%+<M4? G"$,9,2-�1&K

��<>(21�B;xNu])3-�4?)�D{<!-�)�<!-&1�<0�> G"$#|%7"C'!(9)3"$,�4�'!(9,2,9@�J$-&1?4� �"C)?)3-&1{ 8@E1�-A:i@E1�Å$F0#>@�D{,9-&B!X$-m(2#W)�-&#!4?(9JE-�ÅG'!1?@C�B!�!%�)3(2@$#!4&K�u=-�/I'q-&%�)m)3<!"C)~4�'!(9,2,2@SJ$-&1�4A �"C)?)3-&1� 8@E1�-p:i@$1~(9#!B!�!4�)31?(2-&4�,9(2F$-h%�@E �'>�>)3-�1�4&xz4�%�(2-�#f)�(9ZN%h-��0�>(2'I� �-�#W)7xzk!(2@C��)3-�%+<�x�@E1A'!<N"$1? G"C%&-&�I)3(2%&"$,�)�<N"$#e(2#!B!�>4?)31?(2-�4~,9(2FC-l%&-& 8-&#W)&x�4�)3-&-�,�@E1�,2�! pkq-&1�Kh��(2#>B!(2#!X�)�<N"C)<f�! G"C#|%&"$'!(*)+"$,q4�'!(9,2,9@�J$-&1?4�"$1�-= �@E1?-Y(2 8'q@E1?)3"$#W)]:i@E15%&-& 8-&#W){)3<!"$#�:i@E1Hk!(9@C��)�-&%+<`@E1]%&@E 8'!�>)�-&1�4�x>D5@E�!,2B%7"$4�)lB!@E�>k>)l@E#^)�<!-�-�4?)3(9 G"�)3-&4�KguAZN#!Bs)�<N"C)p 8@E4�)p@$:�)�<!-�-&4�)3(9 G"C)�-&Bs4?'!(2,9,2@SJE-�1t%�@E 8-&4m:i1?@E Ì<!(*��)3-&%+<'!,\"C#f)�4&K~�N@E1=,9@SDH��)3-�%+<�'!,\"C#f)�4&xq)3<!-l4?'!(2,9,2@SJE-�1=(24�J0(21?)��N"$,9,96�[&-�1�@!KAÍ·<!-�#�u{4?)31�"C)3(*:§6w)�<!-p4�"$ �'>,2-mkW6w)3<!-:i13"$%�)3(9@E#`@$:z-& 8'!,2@S6$-&-&4HD{<>@�"C1�-A%&@$,2,2-�XE-=-�B!�!%&"C)3-�B�x.u�Z!#!B`)3<N"C)�)�<!-A4�'>(2,2,9@SJE-&1](24H,2"$1�XE-�15)�<!-A,\"$1?XE-&15)3<!-:i13"$%�)3(9@E#�@$:�%�@E,2,9-&XE-=-&B!�!%&"C)3-�BwD5@E1�FC-&1?4=(2#�)�<!-�'!,\"C#f)&K

��(2#N"$,9,96$xCu�)3-�4?)�D{<!-�)3<!-�1�)�<!-� �"$XE#!(*)3�!B!-5@$:.)3<!-�4?'!(2,9,2@SJE-�1�JC"$1�(9-&4�kW6l m�!,9)�(*�b�>#!(9)z4?)3"C)3�>4&K���-&#!B!-�1�4?@E#O��$U$U>P�V="$1?XE�!-�4�)�<N"C)�4?(2#!XE,9-}n0�>#!(9)A-�4?)3"$k!,2(94�<! 8-&#W)�4A4�<!@E�>,2Bak_-l 8@E1?-l4�-&#>4�(9)�(9J$-h)�@`)3<!-h,2-�JE-�,�@$:5<0�> G"$#%7"$'>(9)+"C,_(9#G)3<!-=,2@0%7"$,.-&#WJ0(21?@E#! 8-&#W)H)�<N"$#� p�>,9)3(��b�!#>(9)�-&4�)+"$k>,2(24?<! 8-&#W)34�KvLw�!,9)�(*���!#!(9)v-�4?)+"Ck!,2(94�<! 8-&#W)34H"$1�-'N"$1�)�@$:q,\"$1?XE-&1�%&@E1?'_@E1�"C)3(9@E#!4zD{(9)3<h'!,2"$#W)34�(9#l G"C#f6t%&(*)3(9-&4�"$#>B�"C1�-H,9-&4�4�,9(2FC-&,96�)�@~kq-H%�@E#!#!-�%�)3-�B8)�@A)3<!-�(21,2@0%7"$,0-&#WJ0(21?@E#! 8-&#W)7K��.@$1�-�/>"$ 8'!,9-$x$(*)�(94�,2(9F$-&,*6A)3<N"�)� G"C#f6tB!-�%&(24?(2@E#>4�)3<!"C)�"Co_-&%�)�)3<!-]'!1�@0B!�!%�)3(9J0(*)b6m@$:q"��-�#!-&1�"$,�L|@$)3@E1?4&¨0-&4�)+"$k!,9(24?<! �-�#W)H(2#`¸0)7K�c�@E�!(94H"$1?-= �"$B!-�(2#��Y-�)31?@E(9)&K��Y#�)3<!-�%&@E#W)�13"$1�6ExN"$,9,.B!-&%�(24�(9@E#!4)3<N"�)Y"Co_-&%�)�)�<!-~'!1�@0B!�!%�)3(9J0(*)b6`@$:�"h4�(9#!XE,9-}n0�!#>(9){-&4�)+"$k>,2(24?<! 8-&#W)�(2#M¸0)7K]c�@$�!(24�"$1?-t �"$B!-�(2#M¸0)&K�c�@E�!(24�Ku5ZN#>B�)�<N"C)�)�<!-�-&4?)�(2 �"C)3-�B`4�'!(9,2,9@�J$-&1H(94�,\"$1?XE-=:i@E1]4�(2#>XE,2-}�b�!#!(*)H-�4?)+"Ck!,2(94�<! 8-&#W)34�x."$#!B`J0(21�)3�N"$,9,968[&-�1�@h:i@E1 p�!,*)3(*���!#!(*)H-&4�)+"$k>,2(24?<! 8-&#W)34�K

¥�%&%�@E1�B!(9#!Xg)3@�)�<!-� �@E4�)l1�@$k!�!4?)8-�4?)3(9 G"�)3-&4�xv"a@$#!-`'_-�1�%�-&#W)8(2#!%�1�-7"C4�-�(2#s)�<!-`%&(*)b6r%&@E,9,2-�XE-G4?<N"$1�-(24m"$4�4?@I%�(\"C)�-&B�D{(*)3<r"wU>KÏÎ|'q-&1�%�-&#W)+"CXE-�'q@E(2#W)t(2#!%�1�-7"C4�-G(9#^@E�I)3'!�>)&KMuA"C4�4�-�4�4p)�<!-G'!,2"$�!4?(2k!(9,2(9)b6M@$:H)�<!(24-&4�)3(2 �"C)�-MkW6¤%�@E 8'N"$1�(9#!X^(*)�D{(*)3<£)�<!-MB!(*o;-�1�-�#!%&-�(9#¤,\"Ck_@E18%&@$4?)34Gk_-�)bD]-�-&#Ð%&(9)�(2-�4�D{(9)�<£<!(9XE<£"^,9@SD

Page 6: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

,2-�JE-&,�@C:5<f�! �"$#a%7"C'!(9)3"$,�K�ub#a-&�f�!(9,2(2k>1�(2�> wxq(9:�ZN1? �4�"C1�-l1�-&"$,2,*6| �@E1?-p'!1?@IB!�>%�)3(*JE-l(9#�%&(9)�(2-�4=D{(9)�<e<>(2XE<,2-�JE-&,94�@$:m<f�! �"$#Ð%7"$'>(9)+"C,�x�D]-e4�<>@E�!,2B·@Ek>4�-&1�JE-a)3<N"�)w,2"$kq@E1�%&@$4?)34|"$1?-e"$,24?@�<>(2XE<!-�1�)3<!-�1�-ÆO <>@E,2B!(9#!X%&@E#>4?)+"C#f)�D5@E1�FC-&1?4&¨�%+<N"$1�"$%�)�-&1?(24?)�(2%�4+V�Kp�=)3<!-�1?D{(24?-$x� �"$#f�>: "$%�)3�!1?(2#!X�ZN1? �4�D]@E�>,2Ba1�-�,2@0%7"C)�-t:i1�@$ Ñ%&(*)3(9-&4D{(9)�<m,2@SD^<0�> G"$#t%7"$'>(9)+"C,E)3@�%&(9)�(2-�4�D{(*)3<t<!(2XE<~<f�! �"$#t%&"$'!(*)+"$,yKzu_ZN#!Bt)�<N"C)z)3<!-v-&4�)3(9 G"C)�-&B~'!1�@0B!�!%�)3(*JI(*)b6B!(9o_-&1?-&#!%�-&4Ykq-�)bD5-&-�#�%&(*)3(2-�4�D{(9)3<w<!(2X$<w<f�! �"$#M%&"$'!(*)+"$,�"$#>BM,2@SDÒ<f�! �"$#w%7"$'!(*)+"$,�"C1�-~%&@E#!4?(24�)3-&#W)�D{(9)3<@Ek!4?-&1?J$-&BeB!(9o_-&1?-&#!%�-&4Y(9#MD]"$XE-&4=@$:� G"C#0�I: "$%�)��!1�(9#!X�D5@E1�FC-&1?4&KA��<!-l'!1?@IB>�!%�)�(9J0(9)b6�XW"C(2#!4�XE-&#!-�13"C)�-&B�kW6<f�! G"C#w%&"$'!(9)3"$,�4?'!(2,9,2@SJE-�1�"$1�-�@$o_4�-�)�kf6�(2#!%�1�-7"C4�-&B|,\"Ck_@E1]%&@E4�)34&K

�]"$4�-�B~@$#�Ó5O�P�Vq)�<!-�1�@Ek>�!4?)�#!-&4?4�@$:f)�<!-�%&@0-�Ô8%&(9-&#W)34z"$%�1�@E4?4�4�'q-&%&(*ZN%7"�)3(2@$#!4&Õ!O��EV_)�<!-�:i@E�!1�4?'_-�%&(9Z!%7"C)�(2@E#)3-�4?)34�Õq"$#!BeOy�EVv)3<!-Y: "C%�)�)3<!"C)H)3<>-A-&4?)�(2 �"C)3-�B`4�'!(9,2,9@�J$-&1H(94H%&@$#!4�(94?)3-�#W)�D{(*)3<`@Ek>4�-&1�JE-�BwD]"$XE-AB!(*o;-�1�-&#>%&-&4"$%&1?@E4�4�%&(*)3(9-&4&x>u5%�@E#!%&,9�!B!-A)3<!"C){)3<!-�-&4�)3(9 G"C)�-&B�4�'>(2,2,9@SJE-&1](24�#!@$)�%�@E �'>,2-�)�-&,*6G4?'!�!1�(9@E�!4�K

��<>-A1�-& �"$(9#!B!-&1]@$:�)�<!-A'N"$'q-&1�(94H@E1?XW"$#!(9[&-&B�"C4H:i@E,2,9@�D{4�K�ub#|4�-&%�)3(9@E#w�Ix>uv'!1�-�4�-�#f)="p4�(9 �'>,2-YXE-�#!-&1�"$,-&�f�!(9,2(2k>1�(2�> Ö:i13"$ 8-�D5@E1�F�D{(*)3<s4?'!(2,9,2@SJE-�1�4&Kwub#r4�-�%�)3(9@E#Ã�>x�uAB>-&4�%�1�(9k_-G)�<!-�-�%&@E#!@$ �-�)31�(9%G4?'_-�%&(9Z!%7"C)�(2@E#"$B!@E'I)3-&B�"$#!BhuzB!(24?%&�!4?4�)3<!-�'q@$)3-�#W)3(\"C,>4�@$�!1�%�-&4v@$:qk!(\"$4�K�ub#�¸I-�%�)3(9@E#h×!xWuzB!-&4?%&1�(9k_-H)�<!-{ G"�)3%+<!-�BG¡]-�#!4��>4@$:�LM"C#0�I: "$%�)��!1�-�1�4QnI¡]-&#!4?�!4l@$:��z@E'!�!,2"C)3(9@E#aBN"C)3"$4�-�)7K|¸I-�%�)3(9@E#^Î|'!1?-&4�-�#W)34t)�<!-G-� �'>(21�(9%7"$,�1�-�4��!,*)34&K`ub#4�-�%�)3(9@E#hØ>xCu�%&@E 8'N"$1?-5)3<>-] �"$XE#!(*)3�!B!-v@$:!)�<!-H-�4?)3(9 G"�)3-&Bt4�'!(9,2,9@�J$-&1�D{(9)�<mDH"CXE-HB!(*o;-�1�-&#>%&-&4�"$%&1?@E4�4�%�(9)�(2-&4�K¡]@E#!%�,2�!B!(9#!Xh1�-� G"$1?Ff4�"C1�-�(2#`4?-&%�)�(2@E#MÙIK

Ú ÛÝÜ`���7Þ&�7ß����7��à áÖ�� �â ã�ä��7Þ7Þ��~å8æA��ç

ub#e)�<!(24=4�-&%�)3(9@E#au�'!1?-&4?-&#W)t"�4?(2 8'!,2-tXE-&#>-&13"C,�-&�f�!(2,9(2k!1?(2�! è:i1�"$ 8-�D5@E1�F|)3@�4�<!@SDé)3<N"C)A"$#a-&�f�!(2,9(2k!1?(2�! -�/I(24�)34pD{<!-�#Æ<f�! �"$#r%&"$'!(9)3"$,]4?'!(2,9,2@SJE-�1�4l"C1�-�'!1?-&4?-&#W)7K���<!-� �@0B!-&,v(24p"$BN"$'>)�-&Br:i1�@$ �"MD5-&,9,HFf#!@SD{# �@0B!-�,YkW6Ð��@Ek!"$%+F O�P7TERW�Ix~PSTEREREV�Kê��<!-a(2#W)��!(9)�(2@E#£(94�4�(2 8'!,9-$K¦��(21� 84`"$1?-a �@E1?-�'!1�@0B!�!%�)3(*JE-a(2#%&(*)3(2-�4�D{(*)3<M<>(2XE<g@SJ$-&13"C,2,z,2-�J$-&,z@$:�<f�! �"$#g%7"C'!(9)3"$,�x.kq-&%7"C�!4�-p@C:�4�'!(9,2,2@SJ$-&1�4�K�ub#M-&�f�!(2,9(2k!1?(2�! |x!ZN1? �4="$1�-(2#!B>(9o_-&1�-�#W)="C%&1�@$4�4�%&(9)�(2-�4�kq-&%&"$�!4?-~D]"$XE-�4Y"$1?-~<>(2XE<!-�1{(2#�%&(*)3(2-�4�D{(9)3<|"h<!(2X$<!-&1{@SJE-�13"$,9,�,2-�J$-&,�@$:�<0�> G"$#%7"$'>(9)+"C,�x�4�@`)�<N"C)~�!#!(*)�%&@E4�)34~"$1�-l)�<!-h43"$ 8-h-�JE-�1?6fD{<!-�1�-$K�Í^@E1?F$-�1�4t"$1�-l(9#!B!(9o_-&1?-&#W)�kq-&%7"C�!4�-8<!@E�!4?(2#!X'!1�(9%&-�4�"C1�-�<!(2X$<!-&1�(9#|%�(9)�(2-&4HD{(*)3<|"l<!(2X$<!-&1�@SJE-�13"$,9,�,2-�JE-&,�@C:�<f�! �"$#|%7"$'!(*)+"$,yK

��<>-M 8@IB!-�,{(2#!B!(9%7"C)�-&48)3<N"C)8)3<>-&1�-g"$1�-�)bD]@sD]"7604G)3@s-� �'>(21�(9%7"$,9,96� �-&"$4��>1�-M<f�! �"$#£%&"$'!(*)+"$,{-�/f�)3-�1�#N"$,9(9)�(2-&4�ÓtkW6e%&@$ �'N"C1�(2#>X|@$�>)3'!�I)p@$:5ZN1� 84t,9@I%&"C)3-�B�(9#^%�(9)3(9-&4AD{(9)�<^<!(9XE<�"$#!B^,9@SDê,2-�JE-&,v@$:]<0�> G"$#%7"$'>(9)+"C,�Õ!"C#!B�kf6�%&@E 8'N"$1?(2#!XmD]"$XE-�4{@$:�D]@E1?F$-�1�4�,2@0%7"C)�-&B`(2#�%�(9)3(9-&4]D{(*)3<`<!(9XE<|"$#!B�,2@SDÐ,2-�JE-�,�@$:z<0�> G"$#%7"$'>(9)+"C,�Kgub#s)�<!(24p'!"$'_-�1&x�uA)+"CF$-�)3<>-G:i@E1� 8-&1m"$'!'!1?@W"$%+<�Kaub#Ã4�-�%�)�(2@E#ÃØ>x�ut4?<!@SDë)�<N"C)m)�<!-`-&4�)3(9 G"C)�-&B'!1�@0B!�!%�)3(*JI(*)b6hB!(9o_-&1?-&#!%�-&45k_-�)bD]-�-&#`%&(*)3(9-&4�D{(9)3<8<!(9XE<G"C#!B�,2@SD¤,2-�J$-&,945@$:�<0�> G"$#�%7"$'>(9)+"C,."$1�-�%&@E#>4�(24�)3-�#f)

×

Page 7: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

D{(9)�<w@Ek>4�-&1�JE-�BwD]"$XE-�B!(9o_-&1?-&#!%�-&4�k_-�)bD]-�-&#g%�(9)�(2-&4HD{(*)3<�<!(9XE<�"$#!B|,2@SD¢,2-�J$-&,94�@C:�<f�! �"$#|%7"$'!(*)+"$,yK¡]@$#!4�(9B!-&1A)bD5@w%�(9)3(9-&4�"$#>Be)bD5@w)b60'q-&4~@$:],2"$kq@E1&x�-�B!�!%7"�)3-&B^"$#!Be�!#!-�B!�!%7"�)3-&BeD]@$1�F$-�1�4�KG��<!-�1�-�"$1�-

)bD]@a)b60'_-�4h@$:�XE@I@0B!4�x�"a%�@E 8'_@E4?(9)�-GXE@0@IBrì�í·#N"�)3(2@$#N"$,2,*6g)31�"$B!-�B0í "$#!Br,2"$#!B�îsí¶,2@0%7"$,9,96�)�13"$B!-�B�K��"$%+<s%&(*)b6e(24~"w%�@E �'q-�)�(9)�(9JE-h-�%&@E#!@$ m6a)3<N"C)t'!1?@IB!�>%&-&4tì��!4�(9#!Xg"M¡]@Ek!k0n0�Y@E�!XE,2"$4A)3-&%+<>#!@E,2@$X$6qÓpìeïðYñ P7ò$ó ñ �Cò�ô3õMöIxWD{<!-&1?- ñ P�"$#!B ñ �~"$1?-�)3<!-{<!@E�>1�4�D]@$1�F$-�B�kW6h4�Ff(2,9,2-�Bh"$#!B8�!#!4�Ff(9,2,2-�BlD]@E1?F$-�1�4&xI1�-�4�'q-&%��)3(*JE-&,*6�"$#!B|÷ø(94�%7"$'>(9)+"C,�K

�z@�(2#W)31?@IB!�>%&-�)3<!-v'q@E4�4?(2k!(9,2(9)b6=@$:I<0�> G"$#t%7"$'>(9)+"C,E4�'!(9,2,9@�J$-&1?4z(9#~)�<!-v �@0B!-&,yxSu�"$,9,2@SD�)�<!-�'!1�@0B!�!%�)3(*JI(*)b6@$:H'>,\"$#W)34A(9#e"|%�(9)b6g)�@|B>-&'q-&#!B�@E#e)�<!-8"$XEXE1?-&XW"�)3-h,2-�JE-&,�@C:]<f�! �"$#e%7"$'!(*)+"$,�(2#�)3<!-h%�(9)b6qÓ ð ïµù�O ú�V�Kub#|)�<!-~-& 8'!(21?(2%7"C,;'N"$1�){@$:z)3<!-~'N"$'q-&1�x!:i@E1�-7"$%+<|ZN1� è"$#!B|%&(9)b6$x!u] 8-7"C4��!1?- ú��!4�(9#!Xl)3<!-~'_-�1�%�-&#W)+"$X$-t@$:%&@E,9,2-�XE-]-�B!�!%7"�)3-&BlD5@E1�FC-&1?4v(9#m)3<>-H%&(*)b6ExW@E�>)�4�(9B!-5)�<!-HZN1� |Kzub#h)�<!-�"$k>4�-&#>%&-�@$:q<f�! �"$#p%7"C'!(9)3"$,>4?'!(2,9,2@SJE-�1�4:i1�@E ø-&B!�!%&"C)3(9@E#�x�û�üû�ý ï¯U>K�ub#h)3<!(94�%7"$4?-$x0'!1�@0B!�!%�)3(*JI(*)b6p@$:�"YZN1� ¦(9#!%&1?-7"$4?-&4v(9:_ �@$1�-�4�Ff(9,2,2-�BpD]@$1�F$-�1�4]"$1�--& 8'!,2@S6$-&B`(2#�)3<!-�ZN1� |x>k!�I)H<!@E,9B!(2#>Xm%&@$#!4?)3"$#W)H)3<!-=#0�> pk_-�1H4�Ff(9,2,2-�B�D5@E1�FC-&1?4�(2#�)�<!-=ZN1? wx0(2#>%&1�-&"$4�-�4�(2#)3<!-h4?<N"$1�-l@C:]-�B!�!%7"�)3-&BaD5@E1�FC-&1�4~(2#g)�<!-l%&(*)b6g<N"7J$-8#>@|-�o;-�%�)~@E#a'!1?@IB!�>%�)3(*J0(9)b6EKm�Y#�)3<!-h@$)�<!-&1A<N"C#!B�x(9:A%�@E,2,9-&XE-�4?<N"$1�-w(2#Æ"^%&(*)b6ÃXE-&#>-&13"�)3-&4G'_@E4?(9)�(9JE-�<f�! �"$#£%&"$'!(9)3"$,�4�'>(2,2,9@SJE-&1?4&x�"e1�(94�-M(9#Æ%�@E,2,9-&XE-�4?<N"$1�-13"$(94�-�4~'>1�@0B!�!%�)�(9J0(9)b6M@$:5"$,2,�'!,\"$#W)�4A(2#g)3<>-8'>,\"$#W)7Ó û�üû�ý�þ U>Kh�Y(9o_-&1?-&#W)A-�/I'!,2"$#N"C)�(2@E#>4A@$:]<f�! �"$#a%7"C'!(9)3"$,-�/0)3-�1�#N"C,2(9)�(2-�4=<N"7JE-mk_-�-&#�'!1?@E'_@$4�-&B�(9#M)3<>-t)3<>-&@E1?-�)3(9%7"$,z,2(*)3-�13"C)��!1�-Cx;"$#>BM)3<!-m �@0B!-&,z'!1?@E'_@$4�-&BM<!-&1?-l(24%&@E#>4�(24�)3-�#f)�D{(9)�<� �@E4�){-�/I'!,2"$#N"C)�(2@E#!4�K´ÿ

Í�@E1?F$-&1?4H �"�/I(2 8(2[&-{�>)�(2,9(9)b6h4��>k0�?-&%�)�)3@p"tk!�!B!XE-�)�%&@$#!4?)�13"$(9#f)Hkf6�%+<!@0@E4�(9#!Xp�f�N"$#W)�(9)3(9-&45@$:�)3<>-Y%&@E l�'_@$4�(9)�-�XE@0@IBÐ"$#!BÐ1�-�4�(9B!-&#W)3(2"$,Y,2"$#!B�KøÍ�@E1?F$-&1?4M"C#!BÐZ!1� 84�"$1�-a'q-&1?:i-�%�)�,96¶ 8@Ek!(9,2-$Kø���0�>(2,2(9k!1�(9�! (24@Ek>)3"$(2#!-�BeD{<>-&#^D5@E1�FC-&1?4p<N"7JE-�-&�f�N"$,��>)�(2,2(*)3(9-&4Y(9#^"$,9,�%&(*)3(2-�4�"$#!BeZN1� 84t<!"SJ$-G-��0�!"$,��!#!(9)~%�@E4?)m"$%&1?@E4�4%&(*)3(2-�4&K��]-�%7"$�>4�-Y)3<>-Y%&@E 8'q@E4�(*)3-=X$@I@0B�x>ìqx0(24])�13"$B!-�B�x>(*)34H'>1�(2%�-Y(24v)3<!-=43"$ 8-Y-�J$-&1�60D{<>-&1�-CK��v"$1?(\"C)�(2@E#�(2#)3<!-=%&@E4�)�@$:�,9(9J0(2#!X~B!-�'_-�#!B!4�@E#!,*68@E#GJC"$1�(2"C)3(9@E#8(2#G%�@E4?)H@$:�,\"$#>B�x���x0D{<!(9%+<`(24v)3<!-�43"$ 8-�:i@E1]"$,2,ND5@E1�FC-&1?4(2#|"l%&(*)b6EK

� Þ�Ì�ÛJâÂàHÌ�áÐá�«i������±&­FÎßâ'ÕAó�ÔJÒ�Ï��8éOÕ�ÔÂÒñÑ5Ì�â¯ÌAÛJÜ�éOÎßÏOÜ�ÔJàHÌ�Ô1â»ÕpØ�ÎßÌ�áeÎßÏ�ÔJÒ�ÛÚÌ�ØqÔÂÎßÕ�ÏHâ'ÌAÍ�Õ�ÏOܱöZÕ�ÛÂÙ�Ò�ÛÚâ@ÎÐÏ5ÔÂàOÒ�âÂÌ�Í�Ò½ÎÐÏ`ÑpéHâ»ÔÂÛJäÌ�ÏHÑDáÐÕpØ�Ì�ÔÂÎßÕ�Ï9Ø�ÛÂÒñÌ�ÔÂÒ1áßÒ�Ì�ÛÂÏHÎÐÏOÜ°Õ�ïOïRÕ�ÛÂÔÂéOÏOÎÐÔÂÎßÒ�â(ÔÂàHÌAÔ�Ò�ÏHàHÌAÏHØ�Ò1ïOÛJÕzÑOéHØsÔJÎÐæzÎÐÔÆä�ô°Þ°Õ�ÛJÒ1ÛJÒ�ØqÒ�Ï8ÔÂáßä�ÝbÌ�Ï9ÎÐÏHéOÒ�Ï8ÔJÎßÌ�áeïHÌ�ï`Ò�Û(Ózäð%éHØ�Ì�â{«i�������&­�ó}ÕpØqéHâÂÒ�â�Õ�Ï�ÔÂàOÒ�Ó`Ò�ÏOÒqøOÔÚâ'Ì�âÂâÂÕpØqÎÅÌ�ÔJÒ�Ñ�ö;Î÷ÔJà5éOÛJÓHÌAÏ9ÌAÛJÒ�Ì�â ÔÂàHÌAÔ'ØqÕ�Í�Ò1ó}ÛÂÕ�ÍÉøHÛJÍ1â�Ì�Ø��8éOÎßÛÂÎßÏOÜ�ÎßÑOÒ�Ì�â(ó}ÛÂÕ�ÍÔJàOÒ�ÎßÛ�ÏOÒ�ÎÐÜ�àzÓ`Õ�ÛJâ�ô�Ë©Ï5ðQéHØ�Ì�â(ö!Õ�ÛÚÑOâ�ù�úAû�Ò½ÙzÏOÕ�ö ÔÂà`Ì�Ô(ÔJàOÒ�ÛJÒ�ÌAÛJÒ1Ü�ÛJÕ�éHï�ÎßÏ8ÔÂÒ�ÛJÌ�ØsÔÂÎßÕ�Ï`âFÔÂàHÌAÔ¯Ì�ÛÂÒ½Ø�Ò�Ï8ÔÂÛÚÌAá¤ÔJÕ�ÎßÏHÑpÎßæ8ÎÅÑpéHÌ�áïOÛJÕpÑpéHØqÔÂÎßæ8ÎÐÔÆä�ô� ÐôÐôßô �4û�Ò;Ù8ÏHÕ�ö9ÔÂàHÌAÔ®ÔÂàOÎÅâ®ÙzÎÐÏHÑ'ÕAóRÒqìzÔÂÒ�ÛÂÏ`ÌAázÒ���Ò�ØqÔ®ÎÅâ¤ØqÕ�Í�ͯÕ�Ï(ÔJÕFÌ�áÐá8ÔJàOÒ)ÌAÛÂÔJâ®ÌAÏ`Ñ�âJØqÎßÒ�ÏHØ�Ò�â�ô ú õ4àOÒ4ÒqìzÔÂÒ�ÛÂÏ`ÌAáÒ��RÒñØsÔ�Õ�ó4àzéOÍ1Ì�ÏDØ�ÌAïOÎÐÔJÌ�á¦Ý®ðQé`Ø�Ì�â�Ì�ÑOÑOâ�Ý%ÎßÏ9ÏOÕ�Ô�áÐÎßÍ�Î÷ÔJÒ�Ñ�ÔJÕ�ÌAÛÂÔ�ÌAÏHÑ9âJØqÎßÒ�ÏHØ�Ò�ù�ú�Þ°éHØÚàDÕAó;ÒñØqÕ�ÏHÕ�Í�ÎßدáßÎ÷ó}Ò�Îßâ'ØqÛJÒ�Ì�ÔJÎÐæ�Ò�ÎÐÏÍ'éHØÚà�ÔJàOÒ@âÂÌ�Í�Ò ö4Ì�ä1Ì�â4ÎÅâ4ÌAÛÂÔ;Ì�ÏHÑuâÂØ�ÎÐÒ�ÏHØqÒ�ô úHô­ð%éHØ�Ì�â;ÌAÛJÜ�éOÒñâªÔJàHÌ�Ô;áßÕ�ÏOÜ��8ÛJéOÏ�ÎßÏHØqÕ�Í�Ò ÑpÎ���Ò�ÛJÒ�ÏHØ�Ò�â;Ì�Ø�ÛÂÕ8âÂâ!ØqÕ�éOÏ8ÔÂÛJÎÐÒñâ4Ø�ÌAÏÓRÒ¾Ò�ìzïHáßÌ�ÎÐÏOÒñѯÓ8ä¯àzéOÍ1ÌAϽØ�ÌAïOÎÐÔJÌ�áOÒqìzÔÂÒ�ÛÂÏ`ÌAáßÎ÷ÔJÎÐÒñâ¤ÎÐϽÔÂàOÒ;ó}Õ�ÛÂÍ ÕAówáßÒ�ÌAÛJÏOÎßÏOÜ(âÂïOÎÐáßáßÕ�æ�Ò�ÛÚâ�ô%˩ϽâÂéOÓHâÂÒ��8éOÒ�Ï8ÔªÍ�ÕpÑpÒ�áÅâªÕ�ówáÐÒñÌAÛJÏOÎÐÏHÜHÝÎßÏHÑpÎßæzÎßÑpé`ÌAáÅâ@ÌAéOÜ�ͯÒ�Ï8Ô ÔJàOÒ�ÎßÛ@àzéOÍ1ÌAÏ�Ø�ÌAïHÎ÷ÔÚÌAá®ÔÂàHÛÂÕ�éOÜ�à�ÒqìOØÚàHÌAÏHÜ�Ò�â Õ�óeÎßÑOÒ�Ì�âFÎßÏ�ͯÒ�ÒqÔJÎÐÏOÜ8âFö;Î÷ÔJà�Í�Õ�ÛÂÒ1âÂÙ8ÎßáßáÐÒñÑ�ÏOÒ�ÎÐÜ�à8ÓRÕ�ÛÚâ« ª áßÌ�Ò�âÂÒ�Û��?�����OÝ8è�Õ�æ�ÌAÏHÕ�æ8ÎÅØ)Ì�ÏHѽê;Õ�Ó~�?�����&­sôb×�ØqÒ�ͯÕ�Ü�áßét« �?������­®ïHÛÂÕ�ï`Õ8â»ÒñâeÌAÏuÌAáÐÔÂÒ�ÛÂÏHÌAÔÂÎßæ�Ò)Í�ÕpÑpÒ�áRö;àHÒ�ÛJÒ¾àzéOÍ1ÌAÏuØ�ÌAïHÎ÷ÔÚÌAáÒ�ì8ÔJÒ�ÛJÏHÌAáßÎÐÔÂÎßÒ�âFÌAÛJÎßâÂÒ�Ò�æ�Ò�Ï�ö;Î÷ÔJàOÕ�éOÔFáßÒ�Ì�ÛÂÏHÎÐÏOÜ�ÒqìzÔÂÒ�ÛÂÏ`ÌAáßÎ÷ÔJÎÐÒñâ�ô(õ4àOÒ¯Ü�Õ8ÌAá­ÕAóªÔJàOÎÅâFïHÌAïRÒ�Û Îßâ�ÔJÕ�ÔJÒ�â»ÔFö;àHÒqÔÂàHÒ�Û@â»ïHÎÐáßáÐÕ�æ�Ò�ÛÚâ¾Ì�ÛÂÒÒ�ͯïHÎÐÛJÎßØ�ÌAáßáÐä�ÛJÒ�áßÒ�æ�ÌAÏ8Ôñô®õbÒ�â»ÔÂÎßÏOÜ'ö;àOÎßØÚà�ÕAówÔJàOÒ�Ò�ìpïOáßÌ�ÏHÌ�ÔJÎÐÕ�ÏHâZïOÛÂÕ�ï`Õ8â»ÒñÑ�ÎÐÏ�ÔÂàOÒ�ÔÂàHÒ�Õ�ÛJÒqÔJÎßØ�ÌAáRáÐÎÐÔÂÒ�ÛJÌAÔÂéOÛJÒ)ÎÅâ!æ�Ì�áÐÎÅÑwÝzÎÅâeÓRÒ�ä�Õ�ÏHÑÔJàOÒ(âÂØ�Õ�ïRÒFÕAó­ÔÂàOÎÅâ;ïHÌ�ï`Ò�Û�ô

Î

Page 8: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��<>-M-&�f�!(9,2(9k!1�(9�! �:i@E1h)3<!-w4�(9 �'!,9-�%7"$4?-M@$:A@$#!,96Ã)bD5@s%&(*)3(2-�4&xH¥�"$#!B£�=x5(94�B>-&4�%�1�(9k_-�B£(2#¤��(2XE�>1�-PEKA��<!-l�!'WD]"$1�Ba4?,2@E'!(9#!X�,9(2#!-�4=(2#M-7"$%+<�'N"C#!-&,�1?-&'!1?-&4?-&#W)~(2#!B!(*o;-�1�-�#!%&-t%&�!1�JE-&4A:i@E1�)3<!-p)bD5@`-&B>�!%7"C)�(2@E#XE1�@$�!'!4&K�ub#!B!(21?-&%�)��>)3(9,2(9)b6~@$:q4?F0(9,2,9-&Bl"$#>B8�>#!4�Ff(2,9,2-�BpD]@E1?F$-�1�4Qí�� � O�� ��� �qV�"C#!B�� � O�� � � �qV}xE1�-�4�'q-&%�)3(9J$-&,*6Wí(24�"=:i�>#!%�)�(2@E#l@$:q#!@$ �(9#N"$,fDH"$X$-&4v"$#!Bl%�@E4?)�@$:q,2"$#!B�K���<!-�B!@SD{#WDH"$1?B�4?,2@E'>(2#!XY,9(2#!-�4�4�<>@�D¤%&@E mk!(2#N"�)3(2@$#!4@$:�D]"$XE-&4Y"$#!BM1?-&#W)34�D{<!(2%+<�<!@$,2BM%�@E#!4�)+"$#W)=Z!1� 84&¨q�!#!(9)�%&@$4?)34�Ó��GO�� ��� � � � � � �� ú�V=ïpPEx.D{<!-&1?- � (24�)3<!-'!1�(9%&-l@$:5%7"C'!(9)3"$,�xqD{<!(2%+<e(24A"C4�4��> �-�Be)�@`k_-h%&@$#!4?)3"$#W)~"$%&1?@E4�4�%&(*)3(9-&4&Ktu�:]<f�! �"$#a%7"C'!(9)3"$,�-}/I)�-&1?#N"$,2(*)3(9-&4-�/I(24�)7x ú·-&#W)3-�1�4A)3<!-l%�@E4?)A:i�>#!%�)�(2@E#�Ktub#a%&(9)�(2-�4=D{(9)�<� �@E1?-p<f�! �"$#a%7"$'!(*)+"$,yx_ZN1? �4=%7"$#a'!1?@IB!�>%&-h �@$1�-@E�>)�'!�>){D{(9)�<�)�<!-�43"$ 8-~"$ 8@E�!#W){@$:�,\"$kq@E1�"$#>B|%&"$'!(*)+"$,yx>@E1�)3<>-~4�"$ 8-A@E�>)3'>�>){D{(9)3<�,9-&4�4{(9#!'!�>)�4&K

ub#�-��0�>(2,2(9k!1�(9�! |x&�>)�(2,2(*)b6�@$:fD]@E1?F$-�1�4z(24�-��0�!"$,2(9[&-&B~"$%�1�@E4?4�,2@0%7"C)�(2@E#>4&Ó!� � O"� �#� �qV�ï%$ � "$#!B&� � O"� � � �qV�ï$ � :i@E1h-&B!�>%7"C)�-&B·"$#!BÆ�!#!-�B!�!%7"�)3-&B£D5@E1?F$-&1?4&x{1�-�4�'q-&%�)3(9J$-&,*6EKÐ¥�[�-&1�@�n0'!1�@CZ!)�%�@E#!B!(*)3(2@$#Ã:i@$18)�<!-wZN1? "$4�4?�!1�-�4t)�<N"C)~'!1�@0B!�!%�)3(9@E#a p�!4?)�)3"$F$-8'!,\"C%&-h"$,9@E#!X`)3<!-hB!@SD{#WD]"$1�Bs4?,2@E'>(2#!X�%&�>1?JE-CKG��<f�!4�)3<!-8 8@IB!-�,<N"$4�)3<>1�-&-A-��f�N"C)3(9@E#!4tO �>#!(9)�%�@E4?)�"C#!B�(2#!B!(91�-�%�){�>)�(2,2(*)b6h:i@E1H-7"C%+<w4?F0(9,2,_XE1�@E�>'.V](2#�)�<!1�-�-~�>#!Ff#!@SD{#!4pO�� � x� � "$#!B&�qV�K��z@E(2#W)=P=(2#8)3<!-�,2-�:§)]'N"C#!-&,q@$:���(9XE�!1?-tP�1�-&'>1�-&4?-&#W)34H)�<!-=-��f�!(2,9(2k!1?(2�! ¦%�@E pk!(9#N"C)�(2@E#h@$:�D]"$XE-@$:�-�B!�!%7"�)3-&BwD]@E1?F$-�1�4A"$#>BM%&@$4?)�@$:�,2"$#!B|(2#|%&(9)b6�¥tKq��@E(9#f)tPm(9#|)�<!-~1�(2X$<f)�'N"C#!-&,z1�-�'!1�-�4�-&#W)�4=)3<!-~43"C �-%&@E mk!(2#N"�)3(2@$#�:i@E1��!#!-�B!�!%7"�)3-&B|D]@$1�F$-�1�4�K�'

¡]@$#!4�(9B!-&1pD{<N"�)l<N"$'!'q-&#>48(*:�)3<!-`4?<N"$1?-`@$:=%�@E,2,9-&XE-�-&B!�>%7"C)�-&BÃD]@E1?F$-�1�4h(24p<>(2XE<!-�1p(2#r%�(9)b6^�¦)3<N"$#(2#�%�(9)b6w¥mK��N@E1�-�/>"$ 8'!,2-Cx;4?�!'!'q@E4�-l)3<!"C)7x_k_-�%7"$�!4?-h@$:�)3-�%+<!#!@E,9@EXE(2%&"$,zB!(9o_-&1?-&#!%�-&4&x�4?Ff(2,2,9-&BMD5@E1?F$-&1?4~"$1�-'N"$1�)3(2%��!,\"C1�,96a'>1�@0B!�!%�)�(9J$-`(2#r%&(*)b6s�ê"C#!BÃB!-& �"$#!Bs:i@E1t)3<!-� �(24m<!(2XE<;Ke¸IFf(2,2,9-&B^D5@E1?F$-&1?4h �@SJE-�)�@a�=x"C)�)�13"$%�)3-�BekW6�<>(2XE<!-�1=D]"$XE-&4�Kl��JE-�#eD{(*)3<!@E�I)A4�'!(9,2,9@�J$-&1?4&x;D]"$XE-�4t"C1�-l<!(9XE<!-&1�Km�z@E(2#W)~��1?-&'!1?-&4�-�#W)34�)3<!--&�f�!(9,2(2k>1�(2�> j(9#�%&(*)b6��Ò(9:�)3<>-&1�-h"C1�-l#!@�4�'>(2,2,9@SJE-&1?4&K)(ru�:5)�<!-l4�'>(2,2,9@SJE-&1=-�/I(24�)34&x�)�<!-&#a)3<>-l(24�@0%&@$4?)A%��!1?J$-4�<!(*:§)34�:i�!1�)3<!-�1{)�@l)3<!-�1�(9XE<W)7K���<!-� �"$XE#!(*)3�!B>-Y@$:�)�<!-�4�'!(9,2,9@�J$-&1H(94H)3<!-�B!(94?)3"$#!%&-A:i1?@E �m)3@8�>K

ub#�-&�f�!(9,2(2k>1�(2�> wx$Z!1� 84v(9#�%�(9)b68�Æ"$1�-� �@$1�-{'!1�@0B!�!%�)3(*JE-{)3<N"$#8ZN1� 84v(2#8%&(9)b6h¥tKI¸I(2#!%�-�Z!1� 84]"$1?-�:i1?-&-)3@�1�-&,9@I%&"C)3-�:i1�@$ Ò¥�)�@Y�=x�D{<W6t(94�'>1�@0B!�!%�)�(9J0(9)b6�#>@$)�B>1�(9J$-&#m)�@=-��0�!"$,2(*)b6+*GÍ^"$XE-�4�Oy"C#!Bm1?-&#W)}Vz"$1�-5<!(2XE<>-&1(2#|%&(*)b6��=xN �"$Ff(2#!XpZN1? �4{(9#!B!(9o_-&1?-&#W){kq-�)bD5-&-&#M%&(9)�(2-�4&K�u�:�)�<!-t%�@E4?)�@$:�,\"$#>B|(94�#!@$){JE-�1?6|(2 8'q@E1?)3"$#W)H:i@E1ZN1� 84Qí·"$4=(*)=(94�)�<!-m%&"$4�-t:i@E1� �"$#f�>: "$%�)3�!1?(2#!X8ZN1� 84�"$#N"$,*6I[�-&Bg(9#w)�<!-p-& 8'!(91�(2%&"$,�'N"$1�)�í£)3<!-~(2#!%�1�-&"$4�-�B'!1�@0B!�!%�)3(*JI(*)b6G(9#��¶1�-&,2"C)3(*JE-�,96h)3@l¥Ò4?<!@E�!,9B`k_-A@$o_4�-�)�kW6`(2#>%&1�-&"$4�-�B�,\"$kq@E1]%�@E4?)�4�(2#��£1?-&,\"�)3(9J$-&,*6�)�@l¥mKuHD{(2,9,�%&@E 8-tk!"$%+F`)3@�)�<!(24�'q@E(2#W)�(2#g¸I-&%�)3(2@$#gØ>xND{<!-�1�-puH%�@E 8'N"$1�-~ m6�-�4?)3(9 G"�)3-&4�@$:�)�<!-mB>(9o_-&1�-�#!%&-t(2#'!1�@0B!�!%�)3(*JI(*)b6�kq-�)bD5-&-�#M%&(*)3(9-&4]D{(*)3<�<!(2X$<�"$#!B�,2@SD¢<0�> G"$#�%&"$'!(9)3"$,_D{(*)3<�-�/I(94?)3(9#!XlB!(*o;-�1�-&#>%&-&4{(9#|,2"$kq@E1

, Ë4ó}Õ�áÐáßÕ�ö ê;Õ�ÓHÌ�ØÚÙt« �?������­;Ì�ÏHÑuÔJÌ�Ù�Ò@ÔJàOÒ¯áÐÒ�æ�Ò�ábÕAóªépÔJÎÐáßÎÐÔÆä.- © Ì�ÏHÑ/- ® Ì�â)ïHÌ�ÛJÌ�ͯÒ�ÔÂÒ�ÛJâ4ó}Õ�Û âÂÎßͯïHáÐÎÅØqÎÐÔÆä�ô çZáßÕ�âÂéOÛJÒ(ÕAó¤ÔJàOÒÍ�ÕpÑpÒ�á¤ö!Õ�éHáßѱÛÂÒ0��éHÎÐÛJÒ(ÔJàHÌ�ÔFÔÂàHÒ¯áßÒ�æ�Ò�á®ÕAóZépÔÂÎßáÐÎÐÔÆä�ÎÅâFÍ1Ì�ÑpÒ¯Ò�ÏHÑOÕ�Ü�Ò�ÏOÕ�é`â�ô(õ4àOÎÅâ öZÕ�éOáÅѱØqÕ�Í�ïOáÐÎÅØ�ÌAÔÂÒ'ÔÂàOÒ�Í�ÕpÑpÒ�á�ÝQö;ÎÐÔÂàOÕ�épÔÍ1ÌAÙzÎßÏOÜ�Î÷Ô)Í�Õ�ÛÂÒFÎßÏHâ»ÎßÜ�à8ÔÂó}éOá¦ô1 õ4àOÒ'ö!Ì�Ü�Ò(Õ�óªÒ�Ñpé`Ø�Ì�ÔJÒ�Ñ°ö!Õ�ÛJÙ�Ò�ÛJâ)Îßâ�àOÎßÜ�àOÒ�Û�Îßϱå?Ó`ÒñØ�Ì�éHâ»Ò�ÔÂàOÒ�ä�ÌAÛJÒ(Í�Õ�ÛJÒ(ïOÛJÕpÑpéHØsÔJÎÐæ�Ò�ôFõ4àOÒ�ö4ÌAÜ�Ò(ÕAóªéHÏOÒ�Ñpé`Ø�Ì�ÔJÒ�Ñö!Õ�ÛJÙ�Ò�ÛJâZÎßâ)àOÎÐÜ�àOÒ�Û;ÓRÒ�Ø�ÌAéHâÂÒFÕAó¤ØqÕ�ͯïHáÐÒ�ͯÒ�Ï8ÔJÌAÛJÎÐÔÆä�«}ÎßͯïRÒ�ÛÂó}Ò�ØqÔ¾â»éHÓHâÆÔJÎ÷ÔJépÔÂÎßÕ�Ï$­sô

Ø

Page 9: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

%&@E4�)34�K

2 ÛÝ�{�8�g��à æ� ����7� 3��54mà æ=áè�8�56

798�: ;=<�>@?BA!?DCEA!?BF.GIH+<�JLKNM�OQP�R S%JLP�TL?BA!O+UVA!WYXZA�HBA[OQP\K\A]JLA[<^H`_

��<!-� �@0B!-�,5(9#�¸I-&%�)3(2@$#��M(2#!B!(9%7"C)�-&4m)�<N"C)&x�(9:{<f�! �"$#r%7"$'>(9)+"C,]4�'>(2,2,9@SJE-&1?4m-}/>(94?)&x�Z!1� 84p(2#r%�(9)3(9-&4~D{(9)3<<!(2X$<!-&1`@SJE-�13"$,9,Y,2-�JE-�,Y@$:~<f�! G"C#Ð%&"$'!(*)+"$, úÇ%7"C#Ð'>1�@0B!�!%&-�)�<!-�43"$ 8-a"$ 8@E�!#W)`@$:~@E�I)3'!�>)`D{(*)3<·,2-�4�4(2#!'>�>)34�x�@E1~ �@E1?-�@$�>)3'!�I)mD{(9)�<�)�<!-G4�"$ �-�(2#!'>�>)34�K|��<>(24m'!"$'_-�1m-�4?)3(9 G"�)3-&4~'!1?@IB!�>%�)3(9@E#�:i�>#!%�)�(2@E#!4�)3@"$4�4?-&4?4�)�<!-A G"CXE#!(9)��!B!-�@$:�)�<!-A'!1?@IB!�>%�)3(*J0(9)b6�XW"$(2#>4])3<N"�){"$1�-AX$-&#!-�13"C)�-&B�kW6`<f�! G"C#|%&"$'!(*)+"$,q4�'!(9,2,9@�J$-&1?4&Ku�k_-�XE(2#s(9#^)3<>(24m4?-&%�)3(2@$#rkf6^B!(24?%&�!4?4�(9#!Xg)3<!-G(2B!-�#f)�(9ZN%&"C)3(9@E#^(94�4?�!-&4p)�<N"C)l"C1�(24?-�(2#^-&4?)�(2 �"C)3(9#!X|<0�> G"$#%7"$'>(9)+"C,H4�'!(9,2,9@�J$-&1?4l�!4�(9#!Xa'!1�@0B!�!%�)3(2@$#Ã:i�>#!%�)�(2@E#!4�KÃub#Æ4?-&%�)�(2@E#��>KÏ�IxvumB!-�4�%�1�(2kq-�<!@SDèum"$B!B!1?-&4�4h)3<>-&4�-(2B!-�#W)3(9Z!%7"C)�(2@E#`(94�4��>-&4&K

��<>-�:i�!#!B!"$ �-�#W)+"$,v'!1�@$k!,2-� (2#^-�4?)�(2 �"C)3(9#!Xw4?'!(2,9,2@SJE-�1�4~(24�)3<!-�'!1�-�4�-�#!%&-`@$:H�!#!@Ek!4?-&1�J$"Ck!,2-8: "$%�)�@E1�4)3<N"�)�"Co_-&%�)�'!1�@0B!�!%�)3(*JI(*)b68"$#!B�"$1?-=%�@E1�1?-&,\"�)3-&B�D{(9)3<8)3<!-=@�J$-&1�"$,2,q,2-�JE-&,_@$:�<f�! �"$#`%7"C'!(9)3"$,q"$%&1?@E4�4H%�(9)�(2-&4�Ku�)G(94l'_@$4�4�(9k!,2-`)�<N"C)8 �@$1�-�'!1�@0B!�!%�)3(*JE-`ZN1� 848"$1�-|,2@0%7"�)3-&BÃ(9#Æ"C1�-7"C48D{(*)3<Æ"e<!(9XE<!-�18,9-�J$-&,�@$:=<0�> G"$#%7"$'>(9)+"C,�xE:i@E1�1�-&"$4�@$#!4](9#!B!-&'q-&#>B!-&#W)H@C:�<f�! �"$#G%&"$'!(9)3"$,N-�/0)�-&1�#!"$,2(*)3(2-�4&K���@t4�-&-�D{<N"C)v)3<!(94�(2 8'!,2(9-&4&x$u�#!@SD(2#W)31?@IB>�!%&-�<!-�)�-&1�@$XE-&#!-�(9)b6�(2#8)3<!-Y4?(2 8'!,2-{ 8@IB>-&,.B!-&4?%&1?(2kq-&B`(2#8)3<!-='!1�-�JI(9@E�!454�-&%�)3(9@E#�K�¥=45(2#�¸I-&%�)3(2@$#��Ixu�"$4?4��! 8-�)3<N"C)�)�-&%+<!#!@$,2@EX$6h%&"$#8k_-�B!-&4?%&1?(2kq-&BGkW6l)�<!-�:i@$,2,2@SD{(9#!X�¡]@Ek!k0�Q�Y@E�!X$,\"$4�'!1?@IB>�!%�)�(2@E#l:i�!#!%�)3(9@E#�Ó

ìba�c�dfe;ï ð a�c�dfe ñ P ò ó�ga�c�dfe ñ � ò ôhga�c�d�e õ ö ga�c�dfe O�P�V

D{<!-&1?-�ìba�c�dfe�(94H@E�>)�'!�>){@$:z'!,2"$#W)i��x!kq-&,9@E#!XE(9#!Xt)�@8(9#!B!�!4�)31�6kjNx>(9#`%&(9)b6ml�x!"$#!B�6E-&"$1on}Õpjh(2#!B!-}/I-&4����bB>(2XE(*)(2#!B>�!4?)�1�(2-�4&Õ ñ P0a�c�dfe�(24�)3<!-t#f�! pkq-&1=@C:�<!@E�!1?4�D5@E1�FC-&B�kW6M4?Ff(2,2,9-&B|D]@E1?F$-�1�4A(2#|)3<!-t'!,\"C#f)tÕ ñ ��a�c�d�e�(24�)3<!-#f�! pkq-&1=@C:�<!@E�!1?4�D5@E1�FC-&B�kW6|�!#!4?F0(9,2,9-&B�D]@E1?F$-�1�4&Õ�õ&a�c�dfe�(94{%7"$'!(*)+"$,yKH¥=4�(2#M¸I-&%�)3(9@E#a�Ix.u�"$4?4��! 8-t)�<N"C)ð a�c�dfe5(24~"`:i�!#!%�)�(2@E#e@$:]%&@E,9,2-&X$-l4�<N"$1?-�@$�>)34?(2B!-l)3<>-8ZN1? (2#�)3<>-�4�"$ �-h%�(9)b6EKG�]�>)t�!#!,9(2F$-�¸I-�%�)�(2@E#^�Ixzu"$,24?@8"$,2,9@�D·:i@E1��>#!@Ek!4?-&1?JC"$k>,2-�'!1�@0B!�!%�)3(*JI(*)b6�4?<!@I%+Ff4�Ó

,2# ð a�c�dfe;ïrq ú�stc�dfevuxwyaouxw^ciuxw�e+uxw0dzuxwyc�e+uxw0dfeBuxw {�eQu=wya�c�dfe O��EV

D{<!-&1?- ú�stc�d�ev(94Y)3<!-h4�<!"$1�-h@$:5%&@E,9,2-�XE-pXE1�"$B!�N"C)�-&4~"$ 8@E#!X�"$,9,� �"$#f�>: "$%�)3�!1?(2#!X�D5@E1�FC-&1?4m(2#�%�(9)b6|l~D{(9)3<)3<!-l-}/I%&-&'I)3(2@$#�@$:�D]@$1�F$-�1�4�(2#M(2#!B!�>4?)31�6mjNÕ�"$#>BM)3<!-}w�¨�4A"C1�-p�!#>@Ek!4�-�1?J$-&Be'!1�@0B!�!%�)3(9J0(*)b6M4?<!@I%+Ff4�"C)=)3<!-'!,\"C#f)&xf%&(9)b6$xf4?)+"�)3-$x0(2#>B!�!4?)�1?6h"C#!B�6$-7"$1�,2-�JE-�,�O�~�(2#>B!-�/I-&4v)3<!-{4�)+"C)�-�D{<!-�1�-�%&(*)b6}lH(24�,2@0%7"�)3-&BNV�K����f�N"C)�(2@E#

Ù

Page 10: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�t%7"C'>)3�!1?-&4H@$#!,96h4?'!(2,9,2@SJE-�1�4�)3<N"C)]@I%�%&�!1vD{(9)�<!(2#G"t%&(*)b6�"$%&1?@E4�4����bB!(9XE(9)�(9#!B!�!4�)31�(9-&4�K�u�)]B!@0-&4]#!@$)5%7"$'>)��!1�-4�'!(9,2,9@�J$-&1?4t)3<!"C)p@0%&%��!1mD{(9)�<!(2#^"M'!,2"$#W)7x�4?(2#!%�-G)3<!-�:i@I%��!4m@$:�)�<!-�'N"C'_-�1m(24t@E#r-�/0)�-&1�#!"$,2(*)3(2-�4tkq-�)bD5-&-�#'!,\"C#f)�4&KhOy¸I'!(9,2,2@SJ$-&1�4{D{(9)�<!(2#g"G'!,\"C#f)="$1?-p,2(9F$-&,*6`)3@�kq-m(9#W)3-&1?#N"$,9(2[&-�B�KÏV���@$1YB!@0-&4=(*)Y%&"$'>)3�>1�-p4?'!(2,9,2@SJE-�1�4)3<N"�){@I%�%&�!1{kq-�)bD5-&-&#w'!,\"C#f)�4{(2#�)3<>-~4�"$ 8-����bB!(9XE(9)](2#!B>�!4?)�1?6Ex>k_-�%7"$�!4?-~)�<!(24�(94�#!@$){-� �'!(91�(9%7"$,9,96l:i-7"C4�(2k>,2-B!�!-a)3@�BN"C)3"�,9(2 8(9)+"�)3(2@$#!4&K¦�z@Ã)3<!-e-�/0)3-�#W)M)3<!"C)|4�'!(9,2,2@SJ$-&1�4�kq-�)bD5-&-�#Ý'!,\"C#f)�4�(2#·)3<!-e43"$ 8-e���bB>(2XE(*)(2#!B>�!4?)�1?6w"$1�-t,\"$1?XE-$x.-�4?)3(9 G"�)3-&4�@$:iq�"$1?-~)�@Gkq-m(9#f)�-&1?'!1�-�)3-&Bg"$4Y"8,2@SD]-�1=kq@E�!#!BM@E#w)�<!-m �"$XE#!(*)3�!B>-t@$:)3@$)3"$,q4�'!(9,2,2@SJ$-&1�4�K��8�N@E1]#>@�D�x>-&�f�N"C)�(2@E#��m%&"$'>)��!1�-�4�@E#!,9684?'!(2,9,2@SJE-�1�4]X$-&#!-�13"C)�-&B`D{(9)�<!(2#� G"$#f�>: "C%�)3�>1�(2#>X!Kc�"C)3-�1&x�u{XE-&#>-&13"C,2(2[�-m)3<>(24A"$4?4��! 8'>)�(2@E#�"C#!Bau�(9#!%&,9�!B!-p%�@E,2,9-&XE-t4�<N"C1�-l(2#� �"$#f�>: "$%�)3�!1?(2#!X�"$4YD]-�,2,�"$4A(2#"$,2,;@$)3<!-�1{(2#!B!�>4?)31?(2-�4&K

ub#|,2@$XE4])3<>-~'>1�@0B!�!%�)�(2@E#`:i�!#>%�)3(9@E#�k_-�%&@E 8-&4

,2#�ì�a�c�dfe_ï�q úVstc�dfe�uk� � c_,2# ñ P a�c�dfe�uk� � c;,2# ñ ��a�c�d�eIu��pc_,2#{õ/a�c�dfe�ukwya�ukw^ctu}w�e�u}w�dbukw^c�e�ukw0dfe�ukw {"e�ukwya�c�dfe`Oy�WV

��<!-l%&@0-�Ô8%�(2-&#W)�@$:v(9#f)�-&1?-&4?)Y(2#�-&�f�N"�)3(2@$#a�G(24�qzx;)�<!-l-�/0)�-&1�#!"$,�-�o_-&%�)�@$:�-&B>�!%7"C)�(2@E#�@$#�'!1�@0B!�!%�)3(9J0(*)b6EKu�:�q|ï¢UIxI)3<>-= 8@IB!-�,.1�-&B>�!%&-�4H)3@l"m4�)+"$#>BN"$1�BG'!1�@0B!�!%�)3(2@$#�:i�!#!%�)3(9@E#GD{(9)�<!@E�>)5-�/0)�-&1�#!"$,2(*)3(2-�4&K���<>-Y G"C(2#%&@E#>%&-&1?#G(9#l-&4?)�(2 �"C)3(9#!X�qG(24�)3<>-�'>1�-&4?-&#!%�-�@C:;�!#>@Ek!4�-�1?JC"$k!,9-�'!1�@0B!�!%�)3(*JI(*)b6p4?<!@I%+Ff4�)3<N"�)v"$1�-�'q@$)3-�#W)3(\"C,2,96%&@E1?1�-�,\"C)�-&BwD{(*)3<|%&@E,9,2-�XE-�4�<N"$1?-$K�¥ '_@$4�(9)�(9J$-t%�@E1�1?-&,\"�)3(2@$#|kq-�)bD5-&-�#g)3<!-&w&¨´4Y"$#>B ú�stc�dfezD]@E�>,2BM1?-&4?�!,9)�(2#@SJE-&1?-&4�)3(2 �"C)�-&4�@$:]qzK

�N@E1�-}/!"C �'!,9-$x�wya�%7"C'>)3�!1?-&4p�>#! �-&"$4��>1�-&B^'!,\"$#W)t%+<N"$1�"$%�)�-&1�(94?)�(2%&4�)3<!"C)mB>@g#!@$)t%+<N"$#!X$-G@SJE-�1t)3(9 �-Cx4��!%+<s"$4~)�<!-h�f�N"$,2(*)b6�@$:] G"$%+<>(2#!-�4&xz'N"C)3-�#W)34&x��f�N"$,2(*)b6g@$:] G"C#N"$XE-� �-�#f)&xz"$#!Ba)3<!-8%&�!,*)3�!1?-lD{(9)3<>(2#a)3<!-ZN1� Oi)3@`)�<!-h-�/0)3-�#f)~)3<!"C)A)3<!-�6a"$1?-8'q-&1? G"C#!-&#W)7KÏVs¥²'_@E4?(9)�(9JE-�wya�)�<!-&1?-�:i@E1?-8(9#!B!(9%7"C)�-&4Y)3<!"C)A)3<!-h'!1?@C�B!�!%�)3(9J0(*)b6g@$:�'!,2"$#W)o�a(24='_-�1� �"$#!-&#W)�,96w<!(2XE<>-&1=)�<N"$#a"C)A4?(2 8(2,2"$1{'!,\"$#W)�4&K~u�:5'>,\"$#W)34�D{(9)3<a"�'q@E4?(9)3(*JE-kw�a)3-�#!B�)3@�kq-m,9@I%&"C)3-�Bg(2#g%�(9)�(2-&4�D{(9)�<�"G<!(9XE<g@SJE-�13"$,9,�,9-�JE-�,�@$:�<f�! �"$#g%&"$'!(9)3"$,�x.)3<>-&#e�Acz¸w-&4�)3(2 �"C)�-&4Y@$:-&�f�N"C)�(2@E#��t@�J$-&1?-&4?)�(2 �"C)3-�q�K)�G¸I(2 8(2,2"$1�,*6Ex$)�<!-=)3-�1� �w0d�%7"C'>)3�!1?-&4�'q-&1? G"$#>-&#W)�%&(*)b68%+<N"$13"C%�)3-�1�(94?)3(9%&4])�<N"C) G"CF$-�4?@E �-�%&(*)3(2-�4t 8@E1?-�'!1?@IB>�!%�)�(9JE-�)3<N"$#^@$)3<!-�1�4�Kg��<!-&4?-` G"76e(2#>%&,2�>B!-8)�<!-�'!�>k!,2(9%�(9#>:i13"$4�)31?�!%�)��!1�-O 'q@E1?)�4&xq<!(2X$<fD]"7604&x;@$1�"C(21�'q@E1�)34+V}xND]-&"C)3<!-�1=%�@E#!B!(*)3(2@$#!4&xN)3<>-t'!1?-&4?-&#!%�-p@$:�"81�-&4?-7"$1?%+<g�!#!(*JE-�1�4�(*)3(9-&4&x_"$#!B

� Ë©Ï'ÔÂàOÒ�Õ�ÛJä�ÝAÌ Í�Õ�ÛJÒZÜ�Ò�ÏOÒ�ÛJÌ�á8âÂïRÒ�ØqÎÐø`Ø�Ì�ÔÂÎßÕ�ϯö!Õ�éOáÅÑ�Ì�áÐáßÕ�ö9ó}Õ�Û¤âÂïOÎßáÐáßÕ�æ�Ò�ÛJâbÓ`Ò�ÔÆöZÒ�Ò�ϯïOáÅÌAÏ8ÔJâ­ÎßÏ�ÔJàOÒ)âÂÌ�Í�Ò;°Aÿ¢ÑpÎßÜ�ÎÐÔ®ÎÐÏHÑOéHâÆÔJÛÂä�ôõ4àOÎÅâ@ÌAáÐÔÂÒ�ÛÂÏ`Ì�ÔÂÎßæ�Ò�âÂï`ÒñØqÎÐø`Ø�ÌAÔÂÎßÕ�Ï�öZÕ�éOáßÑ�ÛJÒ�ïOáÅÌ�Ø�Ò �z���y���¾ÎßÏ�Ò0�8éHÌ�ÔJÎÐÕ�Ïp��ö;Î÷ÔJà �z��^�y���sÝQö;àOÎÅØÚà�Îßâ ÔJàOÒ½ØqÕ�áÐáßÒ�Ü�Ò¯âÂàHÌAÛJÒ¯ÎÐÏDÌAáßáÍ1ÌAÏzépó�Ì�ØsÔJéOÛÂÎßÏOÜ�ïOáßÌ�Ï8ÔJâ¯ÎÐÏWØqÎÐÔÆä}�½ö;ÎÐÔÂà�ÔÂàOÒuÒqìOØ�Ò�ïpÔJÎÐÕ�Ï�ÕAó�ïOáßÌ�Ï8Ô��bô5×¾â¯Î÷Ô1ö;ÎßáÐá4ÓRÒuØ�áÐÒñÌAÛ¯Ó`Ò�áÐÕ�ö@ݪÔÂàOÎÅâ¯Îßâ¯ÏOÕ�Ô'ó}ÒñÌ�âÂÎÐÓOáßÒÓRÒ�Ø�ÌAéHâÂÒ)ÕAóQÑOÌAÔJÌ@áßÎßͯÎÐÔJÌAÔÂÎßÕ�ÏHâ�ôN�)Õ�ÔÂÒ�Ý8àOÕ�ö!Ò�æ�Ò�ÛñÝ�ÔÂàHÌAÔªÔÂàHÒ�°�ÿ©ÑpÎßÜ�ÎÐÔeÎßÏHÑpéHâ»ÔÂÛJä¯Ø�áßÌ�âÂâÂÎÐø`Ø�ÌAÔÂÎßÕ�Ï�Îßâeæ�Ò�ÛÂä¯ÑpÒqÔÚÌAÎßáÐÒñÑwÝ8Ì�ÏHÑ�ÎßϽÍ1ÌAÏzäØ�Ì�âÂÒ�â!ÔÂàHÒ�ÛJÒ ÎÅâ;Õ�ÏOáÐä�Õ�ÏOÒFïOáÅÌAÏ8Ô)ïRÒ�Û)ØqÎÐÔÆä�ÎßÏuÒ�Ì�ØÚàY°�ÿ©ÑpÎßÜ�ÎÐÔ;ÎÐÏHÑOéHâÆÔJÛÂä�ÝHâÂÕ'ÔJàHÌ�Ô �����y���Q� ����^�y���sô� ×�â»ÎßÍ�ÎÐáÅÌAÛ!ï`Õ�ÎÐÏ8Ô!ÎßâZÍ1Ì�ÑpÒ�Ü�ÛÚÌAïOàOÎÅØ�Ì�áÐáßä�ÎßÏ�þ­ÎßÜ�éOÛJÒ���ô®õ4àHÒ)ÔÂÛJéOÒ â»ïOÎßáßáÐÕ�æ�Ò�ÛªÎÅâªÔJàOÒFÑpÎ)��Ò�ÛJÒ�Ï`ØqÒ¾ÎßϽïOÛJÕpÑpéHØqÔÂÎßæ8ÎÐÔÆä�Ó`Ò�ÔÆöZÒ�Ò�Ï̯ïOáÅÌAÏ8Ô;ÎÐÏuïRÕ�ÎßÏ�Ôz°¯ÌAÏ`Ñ�̯ïOáÅÌAÏ8Ô;ÎÐÏuïRÕ�ÎßÏ�Ô��Oô¤åZéOÔ)Î÷óbÔÂàOÒFÔJÒ�ØÚàOÏOÕ�áÐÕ�Ü�ä¯ÔÂà`Ì�Ô)ÛÚÌAÎÅâ»ÒñâeïOÛJÕpÑpéHØqÔÂÎßæ8ÎÐÔÆä½Õ�óbÒ�ÑOéHØ�ÌAÔÂÒ�Ñ�ö!Õ�ÛJÙ�Ò�ÛÚâZÎÐÏØ�Î÷ÔÆä�å0ÛÂÒ�áßÌAÔÂÎßæ�Ò)ÔJÕ1ØqÎÐÔÆä½×�ÎÅâ4éOÏOÕ�ÓHâÂÒ�ÛJæ�Ò�ÑQÝ�ÔJàOÒFÒ�â»ÔÂÎßÍ1Ì�ÔÂÒñÑ�âÂïOÎßáÐáßÕ�æ�Ò�ÛZÎÅâ!ÔÂàOÒ@ÑpÎ���Ò�ÛJÒ�ÏHØ�Ò ÎßÏuïOÛÂÕpÑpé`ØsÔÂÎßæzÎ÷ÔÆä1ÓRÒqÔÆö!Ò�Ò�ÏuÌ'ïOáÅÌAÏ8ÔÎßÏ�ï`Õ�ÎÐÏ8Ôz°�ÌAÏHÑ�̯ïOáÅÌAÏ8Ô;ÎÐÏ�ïRÕ�ÎßÏ8Ô���Ýpö;àOÎÅØÚà�Õ�æ�Ò�ÛJÒ�â»ÔÂÎßÍ1Ì�ÔJÒ�âeÔÂàOÒFÔJÛÂéOÒ(âÂïOÎßáÐáßÕ�æ�Ò�Û�ô

R

Page 11: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

-�Ô8%&(9-&#!%�6`@$:�,9@I%&"$,;"C�>)3<!@$1�(9)�(2-�4&K�u�:�%�(9)b6GD{(*)3<`"mD5-&,9,;-�B!�!%7"�)3-&B�,2"$k_@$15:i@E1?%&-=)�-&#!B�)�@l<N"7JE-AXE@0@IBG'!�!k!,9(2%(2#>:i1�"$4?)�1��!%�)3�!1?-$x.XE@0@IB`D5-7"C)�<!-&1�@E1{-�Ô8%�(2-&#W)�,2@0%7"$,;"$�>)�<!@E1�(*)3(9-&4&x>-&4?)�(2 �"C)3-�4{@$:�q�@SJ$-&1�-�4?)�(2 �"C)3-A)3<>-~)�1��!-4�'!(9,2,9@�J$-&1�K��

�z�!1?#!(2#!XA)�@~)�<!-�(9#W)3-&1�"$%�)�(2@E#>4&xpw0dfe�(94�"�)�(2 8-���4�'q-&%&(*ZN%�4�<>@I%+Fp)�<N"C)5"Co_-&%�)�45'>1�@0B!�!%�)�(9J0(9)b6p@$:�"C,2,!'!,2"$#W)34(2#s%�(9)b6e%$x�(21�1?-&4?'_-�%�)3(*JE-�@C:�)3<!-�(2#!B!�>4?)31�6EK���/>"$ 8'!,2-�4m(9#!%&,9�!B!-�)�<!-G@$'_-�#!(2#!XM@$:{"$#r"C(21�'q@E1�)7x�)�<!-G%�@E#I�4?)�1��!%�)3(2@$#s@$:�"M1�"$(2,�,2(9#!F�@E1m"w:i1�-�-�D]"S6$x�@E1m(9 �'!1?@SJE-& 8-&#W)�4m(2#e)3<!-G'_@E,9(2%�(2-&4�@$:{,9@I%&"$,v"$B! 8(2#!(94?)�13"C)�@E1�4�K��<!-&4?-�%&(9)b6W��D{(2B!-CxI)3(9 �-}��JC"$1�6I(9#!Xm4?<!@0%+F04�%&"$#|"$,9)�-&1v)3<!-Y@SJ$-&13"C,2,;,9-�J$-&,�@$:�<f�! �"$#`%&"$'!(9)3"$,q(2#�)3<>-Y%&(*)b6GkW6"C)�)�13"$%�)3(9#!X�k_-�)�)3-�15-�B!�!%&"C)3-�B�D5@E1�FC-&1�4�xN"$#!Bh)3<>-&1�-�:i@E1�-�"$1?-�'q@$)�-&#W)3(2"$,2,*6m%�@E1�1?-&,\"�)3-&BhD{(9)�<�@SJ$-&13"C,2,N%&@$,2,2-�XE-4�<N"C1�-$x ú\stc�d�e�K

¸0(2 8(2,\"C1�,96$xI4�)+"C)�-m"C#!Bw)�(2 8-~4?'_-�%&(*ZN%m4?<!@I%+Ff4�x�w {�eQxq%�@E�!,9BM"$,94�@�k_-~4�@E�>1�%&-�4=@$:�k!(\"$4�K��N@E1{-�/>"$ 8'!,2-Cx.(9)(24A'q@E4�4?(2k!,9-m)3<!"C)�4�@E 8-l'N"$1�)34A@$:v)3<>-8¸I@E�>)�<�x�D{<!-&1?-8'>1�@0B!�!%�)�(9J0(9)b6wDH"C4~,9@SDø"�)A)3<!-lkq-&XE(9#!#!(9#!X`@$:v)3<!-PSTEREUC4&x�%7"$�>XE<W)t�>'aD{(*)3<a)3<!-h1?-&4?)~@$:v)3<>-8%�@E�!#W)31�6�B!�!1?(2#!X`)�<!-�PSTEREU$4�x�"$#!Ba)3<N"�)A)3<!(94A �@0B!-&1?#!(2[&"C)3(9@E#'!1�@0%&-�4�4l"�)�)31�"$%�)�-&Br"|k_-�)�)�-&1m-�B!�!%&"C)3-�Bs,\"$kq@E1A:i@E1?%&-$K�¥�,9)3-�1�#N"�)3(9J$-&,*6Ex�(*)~(24~'_@E4?4�(9k!,2-h)3<N"�)m4�)+"C)�-&4t)�<N"C)(2#WJE-�4?)�-&Be �@E1?-p(2#�'>�!k!,2(9%p(2#I:i13"$4�)31��>%�)3�>1�-&4AB>�!1�(9#!XG)3<>-`PSTEREU$4Y"$,24?@`4�'q-&#W)� �@$1�-p@E#a'!�>k!,2(9%m-&B>�!%7"C)�(2@E#"$#!BM)�13"$(9#!(2#>X!x!)3<f�!4Y1�"$(24?(2#!Xhkq@$)3<M<0�> G"$#w%7"$'>(9)+"C,�"C#!BwZN1? �4�¨_'>1�@0B!�!%�)�(9J0(9)b6$K{¥=XW"$(9#�xN)3<!-t'!1�-�4�-�#!%&-l@$:)3<!(94�)b6I'q-�@$:�4?)+"�)3-�,2-�JE-&,�4?<!@0%+F04�D]@$�!,2B�k!(2"$4�-&4�)3(2 �"C)�-&4�@$:]qg�!'WD]"$1�B�K

��<>-h)�-&1? �w^c�e]%&"$'>)3�>1�-&4�(9#!B!�!4�)31?6�"$#!B�6E-&"$1�4�'q-&%&(*ZN%h4�<!@0%+Ff4&Kh¥ê'q@E4�(*)3(9J$-kw^c�e]%�@E�!,2Ba(9#!B!(2%&"C)3-t)3<!-(2#W)31?@IB>�!%�)�(2@E#�@$:�"$#w(9#!B!�!4�)31�6f��4�'q-&%�(9ZN%~#!-�D¯)3-&%+<>#!@E,2@$X$6�)3<!"C)�13"$(94�-&4{'!1?@IB>�!%�)�(9J0(9)b6$K5u�:�(2#!B!�>4?)31?(2-�4{)�<N"C)"$1�-G�0�>(2%+F$-�1p)3@a"$B>@E'>)l#!-�D²)3-&%+<>#!@E,2@$XE(2-�4m)3-�#!Bs)3@�kq-�%&@$#!%&-�#f)�13"C)�-&BÃ(2#s"$1�-&"$4mD{(9)�<r<!(2X$<r"$XEXE1?-&XW"�)3-<f�! G"C#8%&"$'!(*)+"$,yx$-&4�)3(9 G"C)�-&4�@C:�q8D{(2,9,>kq-H�!'WD]"$1�B8k!(\"C4�-&B;K�¥=,*)3-&1?#N"C)�(9JE-�,96$x`w^c�e_ �"76p(9#!B!(2%&"C)3-]"$#h(2#!%�1�-&"$4�-(2#h)3<!-{B!-� G"C#!B�:i@E1�@$�>)3'!�I)]'!1?@IB>�!%&-�BGkW6h(2#!B>�!4?)�1?6�jNxf4�(9#!%&-�@E�>)�'!�>)v(24� 8-7"$4?�!1�-�BG(2#h 8@E#!-�)+"$1�6p)3-�1� 84&K

798^�  ¡W.A[JVH+<�¢�£�>�H+<�P�JYP�M¥¤�¦.<�G�G�P]U�A!OQ?E<�J§HQ¨LAª©«OQA!?vA]JL£�A¬P\M­XZA�HBA!OQP�K\A[JLA[<IH®_

¥¦ �"��?@E1Y"CB>JC"$#W)+"$XE-t@$:v�!4�(9#!X`"G,9@E#!XE(*)3�!B>(2#N"$,�'>,\"$#W)?��,2-�JE-&,�BN"C)3"$4�-�)A(24�)3<N"C)�)3<!-m1�(2%+<>#!-&4?4A@$:�)3<!-mBN"C)+""$,2,9@SD{4� 8-w)�@r"$%&%�@E�!#W)�:i@E184�@$ �-w�!#!@Ek!4?-&1�J$"Ck!,2-M: "C%�)3@$1�4�)�<N"C)G G"76Æ"Co_-&%�)Gk_@C)3<£'!1?@IB>�!%�)�(9J0(9)b6Æ"$#!B@SJE-&1�"$,2,5%&@E,9,2-�XE-�4?<N"$1?-$Ka¸I'q-&%�(9ZN%&"$,2,*6Ex�uA-&4?)�(2 �"C)3-G"M'!1?@IB!�>%�)3(9@E#�:i�>#!%�)�(2@E#^)�<N"C)m(2#!%�,2�!B!-�4m'!,2"$#W)mZ>/I-�B-�o_-&%�)34mO�¯°a�V�x!(9#!B!�!4�)31�6ù�6$-7"$1�-�o_-&%�)34mO�¯c�eiVH"$#!B|4?)+"�)3-!¹�6E-&"$1�-�o_-&%�)�4pO"¯p{"e V}Ó

,2#�ì�a�c�d"{"e_ï�q ú\stc�dfeBux� � c;,9# ñ P a�c�dfeBux� � c_,2# ñ ��a�c�d�eBu±�pc_,2#{õ/a�c�dfevux¯°a�ux¯c�eBu=¯�{�eBuxw0dfe+uxwya�c�dfe O ×fV

² õ4àOÒ)ÔÂÒ�ÛJÍ´³��¾Ø�ÌAïpÔJéOÛÂÒñâ®øOìpÒ�Ñ�ÎßÏHÑpé`âÆÔJÛÂä�ØÚàHÌAÛÚÌ�ØqÔÂÒ�ÛÂÎÅâÆÔJÎßØ�âbÔÂàHÌAÔZÍ1ÌAÙ�Ò)â»Õ�ͯÒ;ÎßÏHÑpé`âÆÔJÛÂÎßÒ�âeͯÕ�ÛÂÒ;ïHÛÂÕpÑpéHØqÔÂÎßæ�Ò;ÔJàHÌAÏ1Õ�ÔÂàOÒ�ÛJâ�µ³y��Ø�ÌAïOÔÂéOÛJÒ�â1Ü�Ò�ÏOÒ�ÛJÌ�á4ÔÂÛJÒ�ÏHÑHâ1ÎÐÏ�ÔJÒ�ØÚàOÏHÕ�áßÕ�Ü�ä�ÔÂàHÌAÔ�Ì#��Ò�ØqÔ�ÌAáßá¾ïOáÅÌAÏ8ÔÚâ½Ì�â1ö!Ò�áßá¾Ì�â1æ�ÌAÛJÎßÌAÔÂÎßÕ�Ï�ÎÐÏ>ïHÛÂÕpÑpéHØqÔÂÎßæzÎ÷ÔÆä�Õ�æ�Ò�Û�ÔJàOÒÓOé`â»ÎßÏOÒ�âJâ)Ø�äzØ�áÐÒ�ô®ËZÎßÜ�ÏOÕ�ÛÂÒi³"�y�)Ì�ÏHÑL³����¤ó}Õ�Û)â»ÎßÍ�ïOáßÎßØ�Î÷ÔÆä�ô

T

Page 12: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

���0�!"C)3(9@E#¤×e(24l)3<>-wkN"C4�(24h@$:�)3<!-|-& 8'!(91�(2%&"$,�"$#!"$,9604�(94l(2#Ã)3<!(94h'N"$'q-&1&KÆ��<!-M1?-&,2"C)3(*JE-`(2 8'q@E1?)3"$#!%&-�@$:%7"$'>(9)+"C,�"$#!Ba,2"$k_@$1Y(24A"C,2,2@SD5-&Bg)�@�JC"$1�6�"$%�1�@E4?4�(2#!B!�>4?)31?(2-�4&x�4�(9#!%&-p)�<!-p)3-�%+<!#!@E,9@EXE(9%7"$,�'N"$13"C �-�)3-&1?4�� � c�x� � c~"$#!B¶�pc�JC"$1�6M"C%&1�@$4�4Y(9#!B!�!4�)31�(9-&4�KY��,\"$#W)�Z>/I-&B�-�o_-&%�)34Y:i�!,9,96|"$k>4�@E1?kg'_-�1� �"$#!-�#f)=<!-�)�-&1?@EXE-&#>-&(9)b6M"C))3<!-�'!,2"$#W)7xW%&(*)b6Ex0"$#!B8(2#>B!�!4?)�1?6l,9-�J$-&,�O�wyatx�w0d�"$#>B·w^c�V}K��]-&%&"$�!4?-=@$:q)3<!-{(9#!%&,9�!4�(9@E#h@$:;'>,\"$#W)�Z>/I-&B�-�o_-&%�)�4&x(2B!-�#W)3(9Z!%7"C)�(2@E#p(94�kN"$4?-&Bh@E#l%+<N"C#!XE-&4�@SJE-�1�)3(9 �-5(2#l@SJE-�13"$,9,>%&@$,2,2-�XE-]4?<N"$1?-$K���<!-{(9#!%&,9�!4�(9@E#m@$:q4�)+"C)�-!¹�6E-7"C1-�o_-&%�)34�"$k!4?@E1�k�4�)+"C)�-m4?'_-�%&(9Z!%m)31�"$#!4�(*)3@E1�6|4�<!@0%+Ff4&K���<!(24�4�'q-&%�(9ZN%&"C)3(9@E#M60(2-�,2B!4�%&@E#!4?(24�)3-&#W)A-�4?)�(2 �"C)3-�4=(9:)3(9 �-}��JC"$1?60(9#!Xt'>1�@0B!�!%�)�(9J0(9)b6h4?<!@0%+F04{"C1�-=4?(2 8(2,2"$1�"$%�1�@E4?4H%&(*)3(2-�45(9#�)�<!-=4�"$ �-�4?)3"C)3-CK�ub#!B!�!4�)31?6�¹�6E-&"$1�"$kI�4�@E1?k�"$#W6h(9#!B!�!4�)31?6h4?'_-�%&(*ZN%�)�(2 8-���J$"C1?60(2#!X=4�<!@0%+Ff4&K�ub#G4?@E �-{ 8@IB>-&,24�xWu�(2#>%&,2�>B!-�(2#!B>�!4?)�1?6�¹v4�)+"C)�-!¹�6E-&"$1-�o_-&%�)34hO"¯�c�{"e§V�K�ub#M)�<!-&4?-m 8@IB!-�,24�xN(2B!-�#f)�(9ZN%&"C)3(9@E#|%&@E 8-&4{:i1�@E �À+¼>Á$Ë�¸�¹+¾kº�»®¹�¼~Ê ¿f½·¹mÉ�¿§Ê§¼0¿§Ë�Á�¾�Ê�Á$ÊI¹hÁ$Ë�¾¿§Ë�¾®¿f¾�Ê"¼}½`À

��<>-� G"$(9#p4�@$�!1�%�-�@$:q<!-�)�-&1�@$XE-&#!-�(9)b6t)3<N"C)�(24�#!@C)�%&@E#W)�1�@E,9,2-&Bt:i@E1�(2#l-��f�N"C)3(9@E#l×A(24�)3<!-])�(2 8-���J$"C1?60(2#!X>x%&(*)b6Æ4?'_-�%&(*ZN%g4�<>@I%+F.Ó«w0dfebK¯��<!-M'_@E4?4�(9k!,2-w%&@E1?1�-&,2"C)3(9@E#�k_-�)bD]-�-&#�w0dfe~"$#!B£%�@E,2,9-&XE-�4?<N"$1�-^¿§Ë¯Á$§ÂLº�ʧ¼Q¹�¼¿§Ë�¾®¿f¾�Ê"¼}¿y¹+¾�(2#M)�<!-l43"$ 8-p%�(9)b6Ex ú\stc�dfe�(24="�%&@E#!%�-&1?#�K�O"��@$)�-m)3<!"C)A%&@$1�1�-�,\"C)�(2@E#wk_-�)bD]-�-&#Áw0dfev"$#!B�%&@$,2,2-�XE-4�<N"C1�-`¿§Ë^ʧ¼Q¹p¾&Á®½·¹m¿§Ë�¾®¿f¾�Ê"¼}½Cx ú�c�d�e�x;D]@$�!,2B�#!@C)�1�-&4?�!,9)�4Y(2#�k>(\"$4?-&Ba-&4�)3(2 �"C)�-&4&KÏV�ub#a)�<!-&@$1?6g@$#!-l �(9XE<W))3<!(9#!Fm)�@t"Ck!4�@E1?k·w�d�eqD{(9)�<�%�(9)b6�¹�6E-7"C15-�o;-�%�)34�K�ub#�'>13"$%�)3(2%�-$xW)3<>@E�!XE<�xW)�<!(24�(94�#!@$)�:i-7"$4?(2k!,9-$xWkq-&%&"$�!4�-�4��>%+< �@0B!-�,;D]@$�!,2B|k_-~"$,9 �@$4?)H%�@E 8'!,2-�)3-&,*6�4�"C)3�!1�"C)3-�B�K �"Â

�z@w)�1?6�)�@g"$%�%&@E�!#W)~:i@E1�)3(2 8-���JC"$1?60(2#>X`%&(9)b6a4?'_-�%&(*ZN%G<!-�)3-�1�@EXE-�#!-&(*)b6Ex�(2#^4?@E 8-84?'_-�%&(*ZN%7"C)�(2@E#>4tuY(9#I�%&,9�!B!-`@Ek!4?-&1�J$"Ck!,2-`%�(9)b6�%+<N"$13"C%�)3-�1�(94?)3(9%&4l4?�!%+<¤"C4l%&(9)b6�'q@E'!�!,2"C)3(9@E#�x��!#>-& 8'!,2@S60 �-�#W)h13"C)�-$x�"$#!BÃ1�"$%&(2"$,%&@E 8'q@E4�(*)3(2@$#�Kg�N@E1t-�/>"$ 8'!,2-Cx�%&@E#W)�1�@E,9,2(2#>X|:i@E1m%+<N"$#!XE-�4l(2#s%�(9)b6�4�(9[&-�(94m'N"$1�)3(9%&�!,2"$1�,*6�(2 8'_@$1?)+"C#f)&x�kq-��%7"$�>4�-|%&@E,9,2-&X$-`XE13"$B>�N"C)3-�4G"C1�-� �@$1�-`,2(9F$-�,96^)�@�kq-`:i@E�!#!B�(2#Ã,2"$1�XE-`%�(9)�(2-&4�KÃu�:Y@E�>)�4�@E�>1�%&(9#!Xe(2#!%�1�-7"C4�-&4D{(9)�<�)�<!-�4�(9[&-�@$:z)3<!-�%&(*)b6Ex!1?-�)��!1�#�)3@h4�'q-&%�(\"$,9(2[&"C)3(9@E#� �"S6Gk_-�#!-�Z>)�'>,\"$#W)34�(9#�,\"$1?XE-&1H%�(9)�(2-&4�Kv�=:�%�@E�!1�4?-$x%&@E#W)�1�@E,9,2(2#>Xm:i@E1�@Ek!4?-&1�J$"Ck!,2-�%&(*)b6�%+<N"C13"$%�)3-&1?(24�)3(2%�4{(24�#!@hXE�N"C13"$#W)3-�-A)3<N"C)��!#>@Ek!4�-�1?JC"$k!,9-�%+<N"$13"C%�)3-�1�(94?)3(9%&4"$1�-~"$,94�@h%&@$#f)�1�@E,9,2-�B�:i@E1&K

ub#a4?�! wx�u�%&@E#W)�1�@E,�:i@E1A �"$#W6g4?@E�!1?%&-&4~@$:v�!#!@$k!4�-�1?JE-�Bs<!-�)3-&1?@EXE-�#!-&(*)b6Ex�k!�>)~u�%7"$#e#!@$)�%�@E �'>,2-�)�-&,*61��!,9-h@E�>)A)3<>-�'q@E4�4?(2k!(9,2(*)b6w@C:H4�'>�!1�(9@E�!4�%&@E1?1�-�,\"C)�(2@E#�Km��<!-�FC-�6a(9B!-&#W)3(*:§60(2#!X|"$4?4��! 8'>)3(9@E#a(24Y)�<N"C)7xz"C:§)�-&1%&@E#W)�1�@E,9,2(2#>X=:i@E1�'!,2"$#W)�-�o_-&%�)34&xf(9#!B!�!4�)31?6�¹�4?)3"C)3->¹�6$-7"$15-�o_-&%�)�4v"$#!Bh%&(*)b6m)3(9 �-}��JC"$1�6I(9#!XY@Ek>4�-&1�JC"$k!,2-�%+<!"$1��"$%�)�-&1?(24?)�(2%�4&x��!#>@Ek!4�-�1?J$-&B�%&(9)b6W��D{(2B!-�4�<!@0%+Ff4&x5w0dfeQx�"$#>Bs@SJE-&1�"$,2,5%&@E,9,2-�XE-h4�<N"$1?-�(2#s"$,2,�@$)�<!-&1t(2#!B!�>4?)31?(2-�4&xú�stc�dfebx_"$1�-t�!#!%&@$1�1�-�,\"C)�-&B�K{Í·<N"C)Y"$1�-t-�/>"$ 8'!,2-�4=@$:�4�(9)��N"C)�(2@E#!4{)3<!"C)=D5@E�!,9BMJ0(2@E,2"C)3-A)3<>(24Y"C4�4��> �'>)�(2@E#Q*��<!-A'q@E4�4?(2k!(9,2(9)b6l)�<N"C)�'>,\"$#W)345D{(9)3<`kq-�)?)3-�1H G"C%+<!(2#!-�4H@E1Hkq-�)?)3-�1H G"C#N"$XE-� �-�#f)5)3-�#!B`)3@l,2@0%7"�)3-=(9#`"$1?-7"$4

©�à ްÕ8âÆÔ�ÕAó�ÔÂàOÒ�æ�ÌAÛJÎÅÌ�ÔÂÎßÕ�Ï�ÎÐÏ � ��y��� Îßâ�Ì�Ô�ÔJàOÒ°ØqÎÐÔÆäBĤä�Ò�Ì�Û�áßÒ�æ�Ò�á¦ÝZâ»ÎßÏHØqÒ � ���y��� ÑpÎ��RÒ�ÛJâ'ó}ÛJÕ�Í7Ø�Õ�áßáÐÒ�Ü�Ò�â»àHÌ�ÛÂÒ�ÎÐÏ�Ì�ØqÎÐÔÆäÌ�ÏHÑ�ä�Ò�ÌAÛ Õ�ÏHáÐä°ÓRÒ�Ø�ÌAéHâÂÒ'ÎÐÔ(ÑpÕzÒ�â ÏOÕ�Ô ÎßÏHØqáßéHÑpÒ�Õ�ÏOÒ5°Aÿ¢ÑpÎßÜ�ÎÐÔFÎÐÏHÑOéHâÆÔJÛÂä�ô(Ë©ÏHØ�áÐéHÑOÎÐÏOÜ�ØqÎÐÔÆä+Ĥä�ÒñÌAÛ�ÑOéOÍ�ͯÎßÒ�âFö!Õ�éHáßѱæ8ÎßÛÂÔÂéHÌ�áÐáßäÒ�áÐÎßÍ�ÎÐÏHÌAÔÂÒ � ���y��� ó}ÛJÕ�Í�ÔJàOÒ@ÛJÒ�Ü�ÛJÒ�âJâÂÎÐÕ�ÏQô

PSU

Page 13: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

D{(9)�<|<>(2XE<`%�@E,2,9-&XE-Y4?<N"$1?-$xNB!@0-&4{#!@$){%�@E#!4�)3(9)��>)3-�"l'!1?@Ek!,9-& µ<>-&1�-Cx."$4{'!,\"C#f)]Z>/I-&BM-�o;-�%�)�4�"Ck!4�@E1?kw'>,\"$#W)"$#!B�%&(9)b6a4?'_-�%&(*ZN%�<>-�)3-�1�@EX$-&#!-�(9)b6EK|¸0(2 8(2,\"C1�,96$x;4?<!@I%+Ff4~)3<N"C)m"Co_-&%�)m,9@I%&"$,�-&%�@E#!@E 8(2-�4�k_-�%7"$�!4?-G@$:])3<!-�(21(2#!B>�!4?)�1�(\"C,�%&@E 8'q@E4�(*)3(2@$#�x>"C1�-�%&@E#W)�1�@E,9,2-&B�:i@$1&K �b�

ub#Ã@E1?B!-&1p:i@$1l"g4�<!@0%+F^)�@e(9#!B!�!%�-`4�'!�>1�(2@$�!4l%&@E1?1�-�,\"C)�(2@E#s(9#r-&�f�N"C)�(2@E#r×>x�)�<!-`4�<>@I%+Fs#>-&-&B>4h)�@ak_-%&(*)b6f��D{(2B!-�"$#!B8)3(9 �-}��JC"$1?60(9#!X!K��A#>-�-}/!"C �'!,9-�@C:�4��>%+<�"~4?<!@I%+Fh%�@E�!,2B�k_-{)3<>-=@E'q-&#!(9#!X~@$:�"$#G"$(21?'_@$1?)�@E1"t:i1�-�-�D]"76EK�u�:�)3<>-=#!-�D·(2#>:i1�"$4?)�1��!%�)3�!1?-=13"C(24�-�45)�<!-�'>1�@0B!�!%�)�(9J0(9)b68@$:�"$,2,N-}/>(94?)�(2#!Xt G"$#f�>: "C%�)3�>1�(2#>Xt'!,2"$#W)34(2#|)3<!-~%&(*)b6Exq"$#!BM"C)�)�<!-~43"$ 8-~)�(2 8-�(9)�"C)?)313"C%�)34� 8@E1�-~%&@E,9,2-�XE-AXE13"CB!�N"C)�-&4�)�@8)�<!-m%�(9)b6$xq-�4?)�(2 �"C)3-�4�@$:]qD{(2,9,qkq-�)�@I@t,\"$1?XE-$K�¥=#!@C)3<!-�1]-�/>"$ 8'!,9-=(24v%+<N"$#>XE-&4H(9#�)�<!-=�f�N"$,9(9)b6h@$:�D5@E1?F$-&1?4&K�u�)H(945(9#�)�<!-&@E1�6G'q@E4?4�(2k>,2-)3<N"�)=D5@E1�FC-&1�4�@$:�<!(2XE<>-&1Y"Ck!(2,9(9)b6`,9@I%&"C)3-t(2#M%�(9)�(2-&4�)3<N"�)Y-�/I'q-&1?(2-&#>%&-p,2"$1�XE-�1�(9#!%&1?-7"$4?-&4A(9#M%&@$,2,2-�XE-~4�<N"$1?-$KuAB!(24?%&�!4?4t)�<!(24~(24?4��!-�(2#eXE1�-&"C)3-�1t,9-&#!X$)�<^(9#s¸I-�%�)�(2@E#sÎIKÏØIx�'!1?@�J0(9B!(2#!X|-�J0(9B!-&#!%�-G)3<!"C)m<>-�)3-�1�@EX$-&#!-�(9)b6e(2#D]@$1�F$-�1�4��0�!"$,2(*)b6�(24�#>@$){(2#`: "$%�){B!1�(*JI(9#!Xh m6�1?-&4?�!,9)�4&K

¥¢ZN#N"$,�%�@E#!%�-&1�#|(245)3<N"C){%&"$'!(*)+"$,;"$#!B`,\"Ck_@E15(2#!'>�>)34�4?<!@E�!,9B|(9#�)3<!-�@E1?6Gk_-Y)�1�-&"C)3-�Bw"C4�-&#!B!@$XE-&#!@$�!4&KÈ�#!,9(2FC-�)3<>-=�!4?�N"$,q%7"$4?-=@$:�-�4?)�(2 �"C)3(9@E#�@C:�'!1�@0B!�!%�)3(9@E#�:i�!#>%�)3(9@E#!4�xI<!-�1�-�)3<!-�:i@I%��!4](945#!@C)H@E#�-&4?)�(2 �"C)3(9#!X)3<!-�%�@I-�Ô�%�(2-�#f)�4�@$#�%&"$'!(*)+"$,]"$#!B�,\"$kq@E1&x�k>�>)8(9)l(94l@E#Ã-&4?)�(2 �"C)3(9#!X¶qzKÃ��#!B!@EX$-&#!-�(9)b6Ã@$:�%7"C'!(9)3"$,�"$#!B,\"$kq@E1v(24]"$#�(24?4��!-=@E#!,96h)�@m)3<!-=-�/0)3-�#f)�)�<N"C)](9)51�-&4?�!,9)�4H(2#�k!(\"C4�-&B`-�4?)�(2 �"C)3-�4]@$:�qzK���<!1?@E�!XE<�)�<!-Y'N"C'_-�1&xu�"$4?4��! 8-t)�<N"C)7xq"C:§)�-&1�%&@E#W)�1�@E,9,2(2#>Xp:i@E1�'>,\"$#W)�-�o_-&%�)34&x_(2#!B>�!4?)�1?6�¹�6$-7"$1=-�o_-&%�)�4Y"$#>BM4?)3"C)3->¹�6$-7"$1=-�o_-&%�)�4&x-&#!B>@EXE-&#>-&(9)b6�@C:�%&"$'!(9)3"$,�"$#>B|,2"$kq@E1HB!@0-&4{#!@$)�4?(2XE#!(*ZN%7"C#f)�,96�k!(\"C4�-&4?)�(2 �"C)3-�4{@$:]qzK

��<>(24A"$4?4��! 8'>)�(2@E#g(94=%�@E1�1?-&%�)Y(9:�%+<N"$#>XE-&4A@SJE-�1Y)3(9 �-~(2#g%&"$'!(*)+"$,�"$#!B�,2"$k_@$1="C)A"G'!,\"C#f)Y"$1�-m �@E4�)3,*6B!1�(*JE-�#�kW6�4?<!@0%+F045)3<N"C)5"$1?-�%�@E 8 �@E#h)3@m"$,2,!)�<!-�'!,\"$#W)�45(9#8)�<!-=4�"$ �-�(2#>B!�!4?)�1?68"$#>BG4?)3"C)3-CK���<!(24�D5@E�!,2Bk_-�)3<>-w%&"$4�-Cx]:i@E1l-�/>"$ 8'!,9-$x](*:Y"C,2,H%&"$1�'>,\"$#W)34h(9#£�Y<!(9@aJC"$1�6s)3<>-&(21h%&"$'!(9)3"$,{"$#!B�,\"Ck_@E1l(9#!'!�>)�4hkf6�"4�(9 �(9,\"$1A"C �@E�>#f)t(2#a)3<>-G'q-&1�(9@IBe�!#!B>-&1~%&@E#!4?(2B!-�13"C)�(2@E#;K`��<!-�"$4?4��! 8'>)�(2@E#e(24t"$,24?@w%�@E1�1?-&%�)p(9:5)3<!-�1�-�(24JC"$1�(2"C)3(9@E#g"$%�1�@E4?4�'!,\"$#W)�4Y(2#�%+<N"C#!XE-&4�@SJE-�1Y)3(9 �-t(2#�%7"C'!(9)3"$,�"$#>B�,\"$kq@E1�D{(*)3<!(9#a"�4?)3"C)3-h"$#>Be(9#!B!�!4�)31�6Exk!�>)�4?�!%+<�J$"C1�(\"�)3(2@$#M(24=#!@$)AB!1?(9J$-&#�kW6g%+<N"C#!XE-&4�(9# úHK~��<>(24=D5@E�!,9B�k_-m)�<!-l%7"C4�-$x�:i@$1=-�/>"$ 8'!,9-$x�(*:�%7"$1'!,\"C#f)�4=(9#��Y<!(2@hJC"$1?6�)�<!-&(91=,\"Ck_@E1�"$#>BM%7"C'!(9)3"$,�(2#!'!�I)34=kW6wB!(9o_-&1?-&#W)A"C �@E�>#f)�4&xqk!�>)=4��!%+<�%+<N"C#!XE-&4Y"$1�-#!@$)v%&@$1�1�-�,\"C)�-&BlD{(9)�<h%+<N"$#!XE-�45(9#h%&@E,9,2-&X$-�4�<N"$1?-�"$%&1?@E4�4]�Y<!(2@A%�(9)3(9-&4�¿§Ë`¿§Ë�¾®¿W¾�Ê�¼}¿y¹+¾.º�ʧ¼Q¹�¼{Êi¼>Á$ËgÀ�Á®¼}K���<!-"$4�4?�! 8'>)3(9@E#s(24~#!@$)m%&@E1?1�-�%�)p(*:�%+<N"$#>XE-&4p@SJ$-&1m)�(2 8-8(9#^%&"$'!(9)3"$,v"$#!Bs,2"$kq@E1~"$1�-�k_@$)�<s%&@$1�1�-�,\"C)�-&BeD{(9)3<%+<N"$#!X$-&4=(9# úÃD{(9)3<>(2#w"84�)+"C)�-m"$#>Bw(9#!B!�!4�)31?6$xq"$#!BM%�@E1�1?-&,2"C)3-�B|D{(*)3<|�!#!@Ek!4?-&1�JE-&B�'>1�@0B!�!%�)�(9J0(9)b6�4�<!@0%+Ff4D{(9)�<!(2#e4?)3"C)3-�"$#!B�(2#!B!�>4?)31�6EK���<>(24�D]@E�>,2B^kq-l)3<!-�%7"$4?-�(*:H%&"$1�'!,\"$#W)�4t(9#s¡],9-�JE-�,\"$#>B�x�-}/>'q-&1?(2-�#!%&(9#!XM"

©�© þHÕ�Û¤ÒqìOÌ�ͯïHáÐÒ�ÝAÎ÷ówïOÛJÕpÑpéHØqÔÂÎßæ8ÎÐÔÆä(ÎßÏHØqÛJÒ�Ì�â»Òñâ®ÎÐÏ1Ø�Õ�Í�ïOépÔJÒ�Û®øHÛJÍ1â®áÐÕpØ�ÌAÔÂÒñÑ'ÎßϽãzÎßáÐÎÅØqÕ�ÏVŪÌ�áÐáßÒ�ä'ÌAÏHÑ'ÔÂàHÎßâ¤ÎßÏHØ�ÛÂÒñÌ�âÂÒ�Ñ'ïOÛÂÕpÑpé`ØsÿÔJÎÐæzÎÐÔÆä½Ì�Ô»ÔJÛJÌ�ØsÔ4ØqÕ�áßáßÒ�Ü�Ò¾Ò�ÑpéHØ�Ì�ÔJÒ�ѽö!Õ�ÛJÙ�Ò�ÛJâ¤ÔÂÕ¯ãpÎÐáßÎßØ�Õ�Ï9ŪÌ�áÐáßÒ�ä�Ý8ÔÂàOÎÅâ!öZÕ�éOáßѽÏOÕAÔ4ØqÕ�Ï`âÆÔJÎ÷ÔJépÔÂÒFÌ�âÂÕ�éOÛÚØqÒ¾ÕAó%ÓOÎÅÌ�â�ô¤ëªÛJÒ�âÂéOÍ1ÌAÓOáßäÌ�áÐá;ØqÕ�Í�ïOépÔÂÒ�Û'ïHÛÂÕpÑpéHØ�Ò�ÛÚâ'Ì�ØqÛJÕ�âJâ@ÔJàOÒ�Ï`Ì�ÔÂÎßÕ�Ï�Õ�Û�Ì�Ô¯áÐÒñÌ�â»Ô¯ÎßÏ�ç!Ì�áÐÎÐó}Õ�ÛJÏOÎÅÌ°öZÕ�éOáÅÑ5ÓRÒ�Ò�ìzïRÒ�ÛJÎßÒ�ÏHØ�ÎÐÏOÜ�â»ÎßÍ�ÎÐáÅÌAÛ¯ÎßÏHØqÛJÒ�Ì�â»Ò�ÎÐÏïOÛJÕpÑpéHØqÔÂÎßæ8ÎÐÔÆä�Ý`ÌAÏHÑ�ÎÐÏ`ÑpéHâ»ÔÂÛJäBĤä�Ò�Ì�Û�Īâ»ÔJÌAÔÂÒ¾Ò��RÒñØsÔÚâ;öZÕ�éOáÅÑ�Ì�ÓHâ»Õ�ÛÂÓ�ÔÂàOÎÅâ;éOÏHÕ�ÓHâÂÒ�ÛJæ�ÒñÑ�âÂàOÕpØÚÙRô

PEP

Page 14: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

,\"$1?XE-&1�'!1?@IB!�>%�)3(*J0(9)b6�(2#>%&1�-&"$4�-~)3<N"C#M%7"C1='!,2"$#W)34�(2#�¡](9#!%&(9#!#N"C)�(�xN1�"$(24?-~)�<!-&(91�,2"$k_@$1�"C#!BM%&"$'!(9)3"$,�(2#!'>�>)34 �@$1�-`)3<N"C#¤%7"C1�'!,2"$#W)34h(2#¤¡](2#>%&(2#>#N"C)3(yx]"C#!B£"C)h)�<!-w4�"$ 8-|)�(2 8-�)3<!-|#f�! pkq-&18@$:Y%�@E,2,9-&XE-�XE1�"$B!�N"C)�-&4-& 8'!,2@S6$-&Be¿§Ë�¿§Ë�¾®¿f¾�Ê"¼}¿y¹+¾�º�Êi¼Q¹�¼�ʧ¼>Á$Ë^À�Á®¼3¾H(9#!%&1?-7"$4?-~ 8@E1?-A(2#w¡],2-�JE-&,2"$#!B`)3<!"$#w(9#w¡](2#!%�(2#!#N"�)3(�K

ub#�)3<>-~#>-�/0)�4�-&%�)3(9@E#�xNu]'>1�@SJ0(2B!-A4?@E �-�(9#!B!(21?-&%�){-�J0(2B!-�#!%&-�@E#�)3<>-�JC"$,9(2B!(*)b68@$:� m6�"$4�4?�! 8'>)3(9@E#!4&K

798y7 Æ�PVFLOǤ�¦&A[£!<I¢�£�>�H+<�P�JYÈ�A!?�HB?

¥=,*)3<!@E�>XE<£uh%7"$#¶#>@$)�%�@E �'>,2-�)�-&,*6Æ1?�!,2-w@E�>)�)3<!-g'q@E4?4�(2k>(2,2(*)b6r)3<N"�)�-&4�)3(9 G"C)�-&4�@$:�-&�f�N"C)�(2@E#¶×^1�-�º!-&%�)�!#!@Ek>4�-&1�JE-�B|%�(9)b6lD{(9B!-$xf)3(9 �-}��JC"$1?60(9#!X�'!1�@0B!�!%�)3(9J0(*)b6l4�<!@0%+Ff4&x!u�:i�!1?)�<!-&15(2#WJE-�4?)3(9XW"C)�-�)�<!-�JC"$,9(2B!(*)b6p@$:� m6(2B!-�#W)3(9:§60(9#!Xh"$4�4?�! 8'>)3(9@E#!4{�!4�(9#!Xl:i@E�!1�4?'_-�%&(9Z!%7"C)�(2@E#`)3-�4?)�4&K

É�Ê+ËkÌ­ÍÏÎ�Ð!Ñ=ÒÔÓ�Õ�ÍÏÎ�Ö`×+ØLÙ&×+Ú]ÎfÛ°×QØ9ÜbÐ[Í�Û°Ýp×QÞ�ß�à�á�â]ã«×QЬÙ&×+Ú]Î�ÛÏ×QØ�ä ��(91�4?)&x_u�1?-&'q-7"C)=)3<!-l"C#N"$,9604?(244��!k>4?)3(*)3�>)�(2#!Xl<f�! �"$#`%&"$'!(9)3"$,q@E�>)34?(2B!-�)3<!-A'!,2"$#W)]D{(*)3<�"m 8-7"$4?�!1�-A@C:�@�J$-&1�"$,2,_»N¼0½S¾�¿�À�Á$ÂW%7"C'!(9)3"$,_@$�>)34?(2B!-)3<!-~'!,2"$#W)7Kvu�:� m6`-�4?)3(9 G"�)3-A@$:�<0�> G"$#|%7"C'!(9)3"$,�4�'!(9,2,9@�J$-&1?4�"C1�-�4�'!�>1�(2@$�!4&x.@E1{(9:z)3<>-�6�%7"C#Mkq-~-}/I'!,\"$(9#!-&BkW6^"CXEXE,2@$ �-�13"C)�(2@E#g-�o;-�%�)�4m@$)�<!-&1�)3<N"C#^<f�! �"$#^%&"$'!(9)3"$,�-�/0)�-&1�#!"$,2(*)3(2-�4&x�)3<>-&#suY �"76gZN#!B�)3<N"C)~'!,2"$#W)34,2@0%7"C)�-&Bs(9#s%&(*)3(9-&4tD{<>-&1�-�)�<!-`@SJE-�13"$,9,5,9-�JE-�,H@$:{'!<W604�(9%7"$,]%7"$'!(*)+"$,v(24t<!(2X$<r"$1�-G �@E1?-G'!1?@IB>�!%�)�(9JE-�)3<N"$#4�(9 �(9,\"$1�'!,2"$#W)34�,9@I%&"C)3-�Bp(2#m%&(9)�(2-�4�D{<!-�1�-H)3<>-H@SJE-&1�"$,2,I,2-�JE-&,I@$:.'!<W604�(9%7"$,!%&"$'!(*)+"$,0(24�,2@SD�K��Y#m)�<!-H%&@$#f)�13"$1�6Ex(9:� m68-�4?)3(9 G"�)3-&4]"$1�-�%7"$'I)3�!1?(2#!X�º�ËN ½�<f�! �"$#�%7"C'!(9)3"$,_-}/0)3-&1?#N"$,9(9)3(9-&4�x0)�<!-&1?-Y(24v#!@l1�-&"$4�@$#GD{<W6�'!<W604�(9%7"$,%7"$'>(9)+"C,�(2#�@E#!-�'!,2"$#W){4�<!@$�!,2B�kq-~%�@E1�1?-&,2"C)3-�B�D{(*)3<�'!1?@IB!�>%�)3(*J0(9)b6`(9#`@$)3<!-�1{'!,\"$#W)�4&K

�� 8'!(21?(2%&"$,2,*6ExWu�ZN#!B`)3<N"�)H)3<!-A@SJ$-&13"C,2,�4�)3@0%+FG@$:z'!<W604�(9%7"$,�%&"$'!(9)3"$,;(9#`"l%&(*)b6G@E�I)34�(9B!-�"p'!,2"$#W)�<N"$4�#!@-�o_-&%�)=@E#|"h'!,\"C#f)&¨�4�'>1�@0B!�!%�)�(9J0(9)b6$K

É0åzË�æ�Ú]Î"Ø�Ø�ßvç�Ýpè�Íêé§ÎfÛÓ[Î�Х׶ÙÔÎfÛ�Õ|æ�Ó[ß�â[Ø�ÞìëíÝvÖ¡Ø"Î"Ð[ÝÔî�ÎfÛÓðï.Ö`ß�Ð[ß�ã´Î"ÖÔë­Î"Í�Û°×QÐ[Ö`Ýñä ¥�4�"Y4�-�%&@E#>B4�'q-&%�(9ZN%&"C)3(9@E#a%+<!-&%+F.xzu�)�-&4?)�D{<!-�)3<!-�1A)3<!-l �"$XE#!(*)3�!B>-p@$:v4�'!(9,2,9@�J$-&1?4Ak_-�)bD]-�-&#^(9#!B!�!4�)31?(2-&4AB>-&'q-&#!B!4�@E#)3<!-�(21l,9-�JE-�,�@$:�(2#W)3-�13"$%�)3(2@$#�KøI'q-&%�(9ZN%&"$,2,*6Ex�um(9#fJ$-&4�)3(2XE"C)3-�D{<!-�)3<!-�1�<f�! �"$#Ã%7"C'!(9)3"$,H4�'>(2,2,9@SJE-&1?4pD{(9)�<!(2#"�%&(*)b6gkq-�)bD5-&-&#e(2#>B!�!4?)�1�(9-&4Y)3<!"C)�"$1?-p-&%�@E#!@E 8(2%&"$,2,*6�%&,2@$4�-|Oy"C#!Bg)3<!-�1�-�:i@E1�-l@$:§)�-&#a(2#W)�-&13"C%�)}V�"$1�-p,2"$1�X$-&1)3<N"C#G4�'>(2,2,9@SJE-&1?4�k_-�)bD]-�-&#`(2#>B!�!4?)�1�(9-&4�)3<N"�)H"$1?-{-&%&@$#!@E 8(2%7"C,2,96mB!(24�)+"$#W)=Oy"C#!B�)�<!-&1?-�:i@E1?-�1�"$1�-�,96l(9#f)�-&1�"$%�)+V�KÍ·(9)�<!(2#�"a%&(9)b6$x5D5@E1�FC-&1?4�"$1?-|,9(2FC-&,96�)3@e(2#W)3-�13"$%�)h �@$1�-`D{(9)�<Æ@$)�<!-&1lD5@E1�FC-&1?4G(2#Ã(9#!B!�!4�)31�(9-&4l)3<!"C)�"$1�--&%�@E#!@E 8(2%&"$,2,*6M%�,2@E4?-$K8u=-�/I'q-&%�)m4?'!(2,9,2@SJE-�1�4A)3@�kq-8,2"$1�X$-lk_-�)bD]-�-&#s(9#!B!�!4�)31�(9-&4A)3<!"C)~(2#W)3-�13"$%�)t@C:§)3-&#�"$#!B[&-�1�@�kq-�)bD5-&-&#�(2#>B!�!4?)�1�(9-&4m)�<N"C)p#>-�JE-�1l(2#W)3-�13"$%�)7Ka��(9#!B!(9#!Xw)�<N"C)p<f�! �"$#r%&"$'!(9)3"$,�4�'!(9,2,9@�J$-&1?4l"$1�-�,\"$1?XE-k_-�)bD]-�-&#s(9#!B!�!4�)31?(2-&4Y)�<N"C)~"$1?-l,2@0%7"C)�-&B�(9#a)�<!-l43"C �-l%�(9)b6gk>�>)~4�-&,9B!@E �(2#W)3-�13"$%�)AD]@E�>,2Bak_-h4?�!1�'!1?(24?(2#!X

P��

Page 15: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

"$#!B| G"76G(2#!B!(9%7"C)�-Y)3<N"�){ m6`-&4�)3(9 G"C)�-&4{"$1?-�'_@E,9,2�>)�-&B`kW6`%�(9)b6W��D{(9B!-�'!1�@0B!�!%�)3(9J0(*)b6�4�<>@I%+Ff4&K � ���<>-�F$-�6¤�f�!-&4�)3(2@$#Ð(94G<!@SDj)3@s 8-7"C4��!1?-�(2#W)3-�13"$%�)3(2@$#£k_-�)bD]-�-&#Ð(2#!B>�!4?)�1�(2-�4&Kd�]-�%7"$�>4�-�)3<!-M-�/>"$%�)

�-�%+<N"$#!(94� @$:�)3<!-M4�'!(9,2,2@SJ$-&1G(94G#!@C)�Ff#!@SD{#�x�)�<!-g%+<!@$(2%&-M@$:~"s �-�)31?(2%|(24�#!-�%&-�4�43"C1�(2,*6£"C1�k!(*)313"C1?6EK¯u�!4�-�(9#!'!�>)��b@E�>)�'!�>)p)3"$k!,9-&4&Ke��<!-�(2#>'!�>)?��@E�>)�'!�>)p)3"$k!,2-�4p4�-�-& "�1?-7"$4?@E#N"$k!,9-�%+<!@E(9%&-�)�@� �-&"$4��!1?-`<!@SD(2#!B>�!4?)�1�(2-�4m(9#f)�-&1�"$%�)&x�k_-�%7"$�>4�-�)3<>-�6�'!1�@SJ0(2B!-�B!-�)3"$(2,9-&B�(2#>:i@E1? G"�)3(2@$#e@$#^)3<!-�ºN@SD{4p@$:�)3<>-GXE@0@IB>4p"$#!B4�-�1?J0(2%�-&4�)3<N"�)� G"CF$-H�!'l)�<!-H'!1?@IB!�>%�)3(9@E#l'!1?@I%�-&4�4�@C:_(9#!B!�!4�)31?(2-&4�K�¸I'q-&%�(9ZN%&"$,2,*6Ex�)3<!-�(9#!'!�>)��b@E�>)�'!�>)�)+"$k!,9-&44�<!@SDÐ<!@SD·(2#>B!�!4?)�1�(9-&4v'!1�@SJ0(2B!-�(2#>'!�>)v)3@!xI"$#!B��!4�-Y@$�>)3'!�I)5:i1?@E wxf-&"$%+<�@$)�<!-&1�K�u�"$4�4?�! 8-�)3<!"C)5)�<!-�,2-�J$-&,@$:�(2#W)�-&13"C%�)3(9@E#Mkq-�)bD5-&-�#a G"$#f�>: "C%�)3�>1�(2#>XG"$#>Bg-7"$%+<�@C:�)3<!-�P��bB!(9XE(9){(9#!B!�!4�)31?(2-&4�(24�'!1�@E'q@E1�)3(2@$#N"$,�)3@�)3<!-JC"$,2�!-l@C:5(9#!'!�>)�4Y)3<N"�)A-7"$%+<e(2#>B!�!4?)�1?6M'!1�@SJ0(2B!-�4A)3@` �"$#f�>: "$%�)��!1�(9#!X!K~¥=%�%&@E1?B!(2#!X`)�@�)3<!(94�"$4�4?�! �'I)3(2@$#�x)3<!-=(2#!B!�>4?)31�6GÅC)313"C#!4�'q@E1?)3"C)3(9@E#�x0%&@E 8 p�!#>(2%7"�)3(2@$#G"$#>B��>)3(9,2(*)3(2-�4�Å~(2#W)3-�13"$%�)34vD{(9)3<` �"$#f�>: "$%�)3�!1?(2#!Xt �@$1�-:i1�-��0�>-&#W)3,*6r)3<N"$#�Å$ZN#!"$#!%&-�Å^kq-&%&"$�!4�-�)3<>-|JC"$,9�!-`@$:Y(9#!'!�>)�4l:i1�@E Å$)31�"$#!4�'q@E1�)+"C)�(2@E#�x�%�@E � m�!#!(2%&"C)3(9@E#"$#!B��>)�(2,2(*)3(9-&4�Å�)3<!"C){"$1?-Y�!4�-�B�(2#` �"$#f�>: "$%�)��!1�(9#!Xp(94],\"C1�XE-�15)3<!"$#�)3<!-YJC"$,9�!-Y@$:�(9#!'!�>)�4]:i1�@$ ëÅ$Z!#N"$#!%�-&Å!K

�� 8'!(21?(2%&"$,.1�-&4?�!,9)�4�%&@E#IZN1� Ç)3<N"C)])3<!-A �"$XE#!(*)3�!B>-=@$:�)3<>-A4�'!(9,2,2@SJ$-&1�45k_-�)bD]-�-&#w(2#!B!�>4?)31?(2-�4H(24�"m:i�>#!%��)3(9@E#�@$:>)�<!-&(91�B!-&XE1?-&-v@$:!(9#W)3-&1�"$%�)�(2@E#;K�¸0'_-�%&(9Z!%7"$,9,96Ex�uqZN#!B�)3<N"C)�)�<!-5,9-�J$-&,W@$:><0�> G"$#~%7"C'!(9)3"$,E(2#�(9#!B!�!4�)31�(9-&4)3<N"�)H"$1?-�,9@I%&"C)3-�Bh(2#�"tXE(*JE-&#�%&(*)b6h"$#!B�@$:§)3-�#G(2#W)�-&13"C%�)vD{(9)3<8 �"$#f�>: "$%�)��!1�(9#!X�<N"$45"t,2"$1�XE-�1�-�o_-&%�)H@E#8)3<!-'!1�@0B!�!%�)3(*JI(*)b6�@$:� �"$#f�>: "$%�)��!1�(9#!Xp'!,2"$#W)34�(9#�)�<N"C){%�(9)b6G)�<N"$#`)3<>-A,2-�J$-&,�@$:�<f�! �"$#�%7"$'!(*)+"$,_(2#`(9#!B!�!4�)31�(9-&4)3<N"�)="C1�-A,2@0%7"�)3-&B�(9#�)�<!-�43"$ 8-A%&(*)b6`k!�>)�#!-�JE-�1�(9#f)�-&1�"$%�)�D{(*)3<� G"C#0�I: "$%�)��!1�(9#!X!K

É0òzËÔæ�Ú]Î�Ø"Ø�ßvç�ÝpètÍkæ�Ó!ß�â]Ø"Þôó�Ý�õ\×Bè�ÑñÝpè�à^ßñè·á�Î�öVÝ�Ö�Óx×QÐ[Þôá�â]ãÁ×+Ð�Ù&×+Ú�ÎfÛ°×QØ5Ü�Ð�Û°Ý�Ð]ÍbÎ�ç�Ý­Ò&èß+÷Þ]â[Ö®ÛÎ�ß�Ð]Í®ä ¥=4v"A)3<!(91�Bh4�'q-&%�(9ZN%&"C)3(9@E#h%+<!-&%+F.x>uz)3-�4?)vD{<!-�)�<!-&1v'!1�@0B!�!%�)3(9@E#!4�)3<N"�)v"$1�-{ 8@E1�-�ÅEFf#!@SD{,9-&B!XE-(2#W)3-�#!4�(*JE-�ÅYk_-�#!-�Z>)� 8@E1�-�:i1�@E ¯<0�> G"$#m%7"$'!(*)+"$,W4?'!(2,9,2@SJE-�1�4�)3<N"C#m'!1?@IB!�>%�)3(9@E#!4�)3<N"�)�"$1?-5,9-&4?4�ÅEFf#!@SD{,9-&B!XE-(2#W)3-�#!4�(*JE-�Å!Kmu�-�/I'q-&%�)�<f�! �"$#a%7"C'!(9)3"$,�4?'!(2,9,2@SJE-�1�4=)�@` G"�)�)3-�1Y 8@E1�-m:i@$1=)3<!-m'!1�@0B!�!%�)3(2@$#�@$:5"$B>JC"$#!%�-&B�x<!(*��)3-�%+<�'>1�@0B!�!%�)�4|O %�@E �'>�>)3-�1�4&xv4�%�(2-�#f)�(9ZN%`-��f�!(2'! 8-&#W)&xvk>(2@C��)3-&%+<;xv@$1l'!<N"$1? G"$%�-&�>)�(2%&"$,§VA)3<N"$#s:i@$1p)3<!-'!1�@0B!�!%�)3(9@E#Æ@C:= �"C)3�>1�-$xv,2@SDÇ)3-�%+<¤'!1?@IB!�>%�)34MO %�-& 8-&#W)7x54?)�-&-&,{@E1l,9�! pkq-&13V�KÃu�:Yu~:i@E�!#!BÃ)3<N"�)h<0�> G"$#%7"$'>(9)+"C,54?'!(2,9,2@SJE-�1�4tD5-&1?-` �@$1�-G(9 �'q@E1�)+"$#W)~:i@E1m%�-& 8-&#W)h'!,\"C#f)�4t)�<N"$#r%&@$ �'!�I)3-&1?4p@E1pk>(2@C��)3-&%+<^'!,\"$#W)�4&x)3<!-�#w)�<N"C)�D5@E�!,2B�%&"$4?)�B!@E�>k>)�@E#|)�<!-�(2#W)3-�1�'!1?-�)3"C)3(9@E#`@$:z)3<!-�4�'>(2,2,9@SJE-&1?4&K

��(21�4�)7x�uA4?)31�"C)3(*:§6a)3<!-�43"$ 8'!,2-8kW6^<>(*��)�-&%+<s4�)+"C)��!4&KMuYZN#!Bs)3<!"C)p 8@E4?)t@$:�)�<!-�-&4�)3(9 G"C)�-&B�4�'!(9,2,2@SJ$-&1%&@E 8-w:i1?@E <!(���)3-�%+<£'!,2"$#W)34&K·��<!-M4�'!(9,2,2@SJ$-&1l:i@E1G#>@E#¤<!(���)�-&%+<£'!,2"$#W)348(24hJ0(21?)��N"$,9,96r[�-&1�@>KݸI-�%&@E#>B�x{u

© ® Ë­ó}ÕpØqéHâZÕ�Ï1ÒñØqÕ�ÏOÕ�Í�ÎÅØ;ÑpÎßâ»ÔJÌ�ÏHØqÒ¾ÎÐÏHâ»ÔÂÒñÌ�Ñ1Õ�ówÜ�Ò�Õ�Ü�ÛÚÌAïOàHÎßØ4ÑpÎÅâÆÔÚÌAÏHØ�Ò)ÓRÒ�Ø�Ì�éHâÂÒ�Ý8Ó8ä¯áßÕ8Õ�ÙzÎÐÏOÜ(ÌAÔ!âÂïOÎßáÐáßÕ�æ�Ò�ÛJâ®ö;ÎÐÔÂàOÎßÏ�Ì(Ø�Î÷ÔÆä�Ý�ËÌ�Í=ÌAáßÛÂÒñÌ�Ñpä'ÔJÌ�Ù8ÎßÏOÜ(ÎßÏ8ÔÂÕ�Ì�Ø�ØqÕ�éHÏ�ÔeÔÂàOÒ Ü�Ò�Õ�Ü�ÛÚÌAïHàOÎßØ�ÌAáHÑOÎÐÍ�Ò�Ï`â»ÎßÕ�ϽÕ�óQÔÂàHÒ âÂïOÎßáÐáßÕ�æ�Ò�Û�ô­×)áÐÔÂàOÕ�éOÜ�à�Î÷Ô!Îßâ!ÎßÏ1ÔÂàOÒ�Õ�ÛJä�ï`Õ8âÂâÂÎÐÓHáÐÒ¾ÔÂÕáßÕzÕ�Ù�ÌAÔ;ÔÂàOÒ�Ü�Ò�Õ�Ü�ÛÚÌAïOàHÎßØ�ÌAá�ïOÛJÕ�ìzÎßÍ�Î÷ÔÆä�ÕAó¤ïOáÅÌAÏ8ÔJâ;ö;ÎÐÔÂàHÎÐÏ�Ì1Ø�Î÷ÔÆä�ÝHÎßÏpó}Õ�ÛJÍ1Ì�ÔÂÎßÕ�ÏuÕ�Ï�ÔJàOÒ@ÒqìOÌ�ØsÔ)áßÕzØ�Ì�ÔJÎÐÕ�ÏuÕ�ó¤öZÕ�ÛÂÙ�Ò�ÛÚâeö;ÎÐÔÂàOÎßÏÌ1Ø�Î÷ÔÆä½ÎÅâ4ÏOÕ�Ô¾Ì�æ�Ì�ÎÐáÅÌAÓHáÐÒ ÎÐÏuÔJàOÒ@ïOéOÓOáßÎÅØFæ�Ò�ÛÚâÂÎÐÕ�Ï�ÕAó­ÔÂàHÒ'çZÒ�ÏHâÂéHâ4ÕAó¤ë®Õ�ïHéOáßÌAÔÂÎßÕ�ÏQô

PS�

Page 16: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

4?)�13"C)�(9:§6g)�<!-�4�"$ 8'!,2-lkW6�)3<>-�'q-&1?%&-&#W)3"$XE-8@$:H%�@E,2,9-&XE-l-�B!�!%7"�)3-&BeD]@$1�F$-�1�4t(2#�"|'!,2"$#W)7K8u�ZN#>B�)3<!"C)�)3<!--&4�)3(2 �"C)�-&Bg4?'!(2,9,2@SJE-�1=(24�,\"$1?XE-&1�:i@E1='>,\"$#W)34�)3<N"�)A-& 8'!,2@S6w"G,2"$1�XE-�1�:i1�"$%�)�(2@E#w@$:v%&@E,9,2-&X$-tXE1�"$B!�N"�)3-&4�)3<N"$#:i@E1�'!,2"$#W)34�)3<N"�)�-& 8'!,2@S6l"�4� �"$,9,2-&1z:i13"$%�)3(9@E#h@$:;%�@E,2,9-&XE-]XE13"$B>�N"C)3-�4&K�uz(2#W)3-�1�'!1?-�)�)3<>(24�1�-�4��!,*)5"$4�-�J0(2B!-�#!%&-)3<N"�)�<f�! �"$#�%7"C'!(9)3"$,�4�'>(2,2,9@SJE-&1?4�k_-�#!-�Z>)� 8@E1?-A<0�> G"$#|%7"C'!(9)3"$,�(2#W)�-&#!4?(9JE-�'!1?@IB>�!%�)�(2@E#!4�K

É�ø�Ë�æzÚ�Î"Ø�Ø�ßvç�Ýpè�Í�æ�Ó!ß�â]Ø"ÞEù@Ýìõ\×+èÑñÝpèíà^ßñè¶æ�Î"Ð!Ñ�Ø�Ý`÷#Ì­Ð[Î�Û�Ò&Ø"×+Ð�ÛÍkÛÓ[×+Ð�ú¬â[Ø�Û°Îf÷ Ì­Ð]ÎfÛ�ÒÔØ�×QÐ�ÛÍtä¥=4�"GZN#!"$,�%+<!-�%+F.x�u�)3-�4?)AD{<!-�)3<!-�1Y)3<!-l �"$XE#>(9)3�>B!-m@$:�)�<!-l-&4�)3(9 G"C)�-&Bg4?'!(2,9,2@SJE-�1�JC"$1?(2-&4=kf6M p�!,*)3(*���!#!(*)4?)3"C)3�!4�KdLw�!,*)3( n0�!#!(*)�4�)+"C)��!4�(9#!B!(2%&"C)3-�48D{<>-�)3<>-&1�"^'!,2"$#W)Gkq-&,9@E#!XE48)3@^"�ZN1� D{(9)�<¤ 8@E1�-|)3<N"C#£@E#!--&4�)+"$k!,9(24?<! �-�#W)7K���-&#>B!-&1?4�@E#¯O��$U$U>P�Vt"C1�XE�!-�4p)3<N"�)l4�(9#!XE,2-+n0�!#!(*)p'!,2"$#W)34p4?<!@E�!,9Brk_-` 8@E1?-G4�-�#!4�(*)3(*JE-�)3@)3<!-M,2-�J$-&,�@$:A<f�! �"$#£%7"C'!(9)3"$,�(9#Æ)�<!-g,2@0%7"C,�-�#WJI(91�@E#> �-�#f)�)3<N"C#£'!,\"C#f)�4�)�<N"C)�kq-&,9@E#!Xe)3@s,2"$1�XE-�ZN1? �4D{(9)�<M-&4�)+"$k>,2(24?<! 8-&#W)34�(2#|4�-�J$-&1�"$,�,9@I%&"C)3(9@E#!4&K]¥=%&%�@E1�B>(2#!X8)3@�)�<!(24{J0(2-�D�x_'!,2"$#W)34{)3<N"�)=kq-&,9@E#!Xh)3@G m�!,9)�(�n-&4�)+"$k!,9(24?<! �-�#W)�Z!1� 84{"$1�-� 8@E1�-A(9#!4��!,2"C)3-�B`:i1�@E è,9@I%&"$,;-�#WJI(91�@E#> �-�#f)�4="C#!BwB>-&'q-&#!Bw �@E1?-A@E#|(2#W)3-�1�#N"$,��ZN1� ê#>-�)bD5@E1�Ff4&Kv�N@E1�-}/!"C �'!,9-$xWD{<!(9,2-� �"$#W6l@$:;)�<!-{: "$%�)�@E1�4�)3<!"C)5"Co;-�%�)�)3<>-�'!1?@IB>�!%�)�(9J0(9)b6m@$:�"t��-�#!-&1�"$,Lw@$)�@E1�4�¨�'>,\"$#W)z,2@0%7"C)�-&B~(2#t¸0)&K�c�@E�!(94�"C1�-�'!1�@$kN"$k!,*6AB!-�)�-&1? �(9#!-&B~(2#�)3<!-]�A-&#!-�13"$,ILw@$)�@E1�4�¨S<!-7"CB!�f�N"$1?)�-&1?4(2#a�Y-�)31�@$(9)px�"$,2,z)3<!-p: "$%�)3@E1?4=)3<!"C)�"Co_-&%�)A)3<!-l'!1?@IB>�!%�)�(9J0(9)b6w@$:5"�4�(9#!XE,2-+n0�!#!(*)='>,\"$#W)A(9#e¸0)7Ktc�@E�!(24Y"$1�-B!-�)�-&1? �(9#!-&B|(2#w¸0)&K�c�@$�!(24�K

�� 8'!(21?(2%&"$,2,*6Ex�uYZN#>B^)3<N"�)t)�<!-G-�4?)3(9 G"�)3-&B�4�'!(9,2,9@�J$-&1�(24~4�(9XE#!(*ZN%7"$#W)�,96�,2"$1�XE-�1�(2#^4?(2#!X$,2-h�!#!(*)m'!,2"$#W)34)3<N"C#w(9#| m�!,9)�(*�b�>#!(9)5'!,\"C#f)�4&K

û üý4t i4

��<!-]B!"C)+"�%&@E 8-v:i1?@E d"��>#!(2�f�!-v G"�)3%+<mkq-�)bD5-&-�#h'!,\"$#W)z1�-�%&@E1?B!4�:i1?@E Ý)3<>-�¡]-&#>4��!4�@C:qLM"$#f�>: "$%�)3�!1?(2#!X�(2#PSTERW��"$#!B�P7TETW�{"$#!BmD5@E1�FC-&1�1?-&%�@E1�B!4z:i1�@E Ý)�<!-�¡]-�#!4��>4�@$:.��@$'!�!,\"�)3(2@$#�K���<!-{¡]-&#>4��!4�@C:qLM"$#f�>: "$%�)3�!1?-&1?4(24�"=,2@E#>XE(9)��!B!(2#!"$,EBN"C)3"$4�-�)�)�<N"C)�%�@SJE-&1?4�)3<!-5�!#!(*JE-&1?4�-�@$:! G"$#f�>: "C%�)3�>1�(2#>X=-&4�)+"$k>,2(24?<! 8-&#W)34zD{(9)3<m@E#!-]'!"$(2B-& 8'!,2@S6$-&-Y@E15 �@$1�-$K���<!-Y�!#!(*)H@$:�@$k!4�-�1?JC"C)3(9@E#G(9#G)3<>-�¡]-&#!4?�!4�@$:�LM"C#0�I: "$%�)��!1�-�1�4�(24v)3<!-�'!,\"C#f)&K � ³8�HD5@(2 8'_@$1?)+"C#f)�"$B>JC"$#W)+"$X$-&4�@$:;)�<!-�¡]-&#!4?�!4]@C:�LM"C#0�I: "$%�)��!1�-�1�45"$1�-{(9)�4�'N"$#!-�,.4?)31?�!%�)��!1�-Cx>"C#!B8"~4�"$ �'>,2-�4�(9[&-,\"$1?XE-A-&#>@E�!XE<�)3@8"$,9,2@SD¢"hB>(243"CXEXE1�-�XW"C)�(2@E#`@$:z)3<>-~B!"C)+"lkW6� �-�)31?@E'_@$,2(9)3"$#�"C1�-7"IK

¥�,9)�<!@E�!XE<£)�<!-�¡]-&#!4?�!4M@C:lLM"C#0�I: "$%�)��!1�-�1�4|%&@E#W)+"C(2#!4`B!-�)+"$(9,2-�B¶(2#>:i@E1? G"�)3(2@$#£@E#¶)3<!-a#f�! pkq-&1�@$:<!@E�!1?4GD5@E1�FC-&B·(2#Æ-7"$%+<·'!,2"$#W)7xH(9#>:i@E1� �"C)�(2@E#Ã@E#£)�<!-M-�B!�!%7"�)3(2@$#£,2-�JE-&,�@$:AD5@E1�FC-&1�4`(94G#!@C)�1�-�'_@$1?)3-�B�K��@Ã@EkI)+"$(9#¶BN"C)+"r@E#¶D5@E1�FC-&1?4&¨{-&B!�>%7"C)�(2@E#�x�u8 G"C)�%+<¶D]@E1?F$-�1�4|(2#£)3<>-�P7TEREUr"$#!BdPST$TEUá]-&#!4?�!4�-�4M@$:

© Ä × Ø�Õ�Í�ïHÌAÏzä1Õ�ï`Ò�ÛJÌAÔÂÎßÏOÜ1Ì�Ô;Í�Õ�ÛJÒ�ÔJàHÌAÏ�Õ�ÏOÒFáÐÕpØ�ÌAÔÂÎßÕ�ÏuÎßâ4ÛJÒ��8éOÎßÛJÒ�Ñ�ÔÂÕ�øHáßÒ@̯âÂÒ�ï`ÌAÛÚÌ�ÔÂÒFÛJÒ�ïRÕ�ÛÂÔZó}Õ�Û)Ò�Ì�ØÚà�áßÕpØ�Ì�ÔJÎÐÕ�ÏQô

P7×

Page 17: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��@E'>�!,\"C)�(2@E#8)3@mZ!1� 84](2#�)3<!-�¡]-�#!4��>4�@$:�LM"$#f�>: "$%�)3�!1?-&1?4&x!kW6�(2#!B!�>4?)31�6�"C#!B`%&(*)b6EK�¸I'q-&%�(9ZN%&"$,2,*6Ex0u�"$4�4?(2XE#-7"$%+<a'!,2"$#W)A(2#w)3<!-8¡]-�#!4��!4�@$:5Lw"$#f�>: "$%�)��!1�-�1�4~"$#!B�-&"$%+<�D]@$1�F$-�1A(2#g)�<!-h¡]-&#>4��!4�@$:5��@$'!�!,\"�)3(2@$#M)3@`"%&(*)b6Wnf(2#!B!�>4?)31�6M%�-&,9,�kN"$4?-&Ba@E#M)�<!-p 8-�)�1�@E'q@E,2(*)+"$#w"$1?-7"�%&@0B!-l"C#!Ba"�����B!(2XE(*)�(2#!B!�>4?)31�6MB>-�ZN#!(*)3(9@E#�KY��<!-���bB>(2XE(*)Y(2#>B!�!4?)�1?6MB!-�ZN#>(9)3(9@E#a(24Y�f�!(*)3-lB!-�)+"$(9,2-�B�x�4�@`)3<!"C)A)3<!-h%�-&,2,94A"$1?-l#N"$1�1?@SD�Kh��/>"$ 8'!,9-&4A@$:]���bB>(2XE(*)(2#!B>�!4?)�1�(2-�4�(9#!%&,9�!B!-CÓz(91�@E#~"$#>Bm4?)�-&-�,0:i@E�>#!B!1�(9-&4]O�¸Iu�¡s�$�W�EV�ÕC-&#!X$(2#!-�4�"$#>Bt)3�>1�k!(9#!-&4]O�¸Iu�¡s�EÎIP�V�ÕC-&,9-&%�)�1�@E#>(2%%&@E 8'!�>)�(2#!X�-��0�>(2'! 8-&#W)�O�¸0u�¡ø�WÎEÙEV}Õ�4�@W"$'>4t"C#!B�%�@E4� 8-�)�(2%�48O�¸Iu�¡¦�CR$×fV�Kp�.@$1A-7"$%+<e%&(*)b6f��(2#!B>�!4?)�1?6�%�-&,2,yxuY�!4?-8)�<!-�¡]-�#!4��>4m@$:H��@E'!�>,\"C)�(2@E#�)3@|%7"C,2%&�>,\"C)�-p)3<!-l:i13"C%�)3(9@E#e@$:]<>@E�!1�4�D5@E1�FC-&BskW6a(2#>B!(9J0(2B>�N"$,24�D{(9)3<%&@E,9,2-�XE-$x�4?@E 8-l%&@E,9,2-&X$-$x�<!(9XE<�4�%+<!@0@E,�"$#>Be,9-&4?4Y)3<N"$#e<!(9XE<�4�%+<!@0@E,yKpu�%�@E pk!(9#!-p)3<>(24Y(9#>:i@E1� �"C)�(2@E#|D{(9)3<'!,\"C#f)],2-�JE-&,q(2#I:i@E1� �"C)3(9@E#h@E#G)�<!-�)�@$)+"$,.#f�! pkq-&1]@$:�<!@E�>1�4]D5@E1�FC-&B�:i1?@E ê)3<!-Y¡]-&#!4?�!4�@$:� �"$#f�>: "$%�)��!1�-�1�4)3@8(2 8'!�>)�-=)3<!-�#f�! pkq-&1{@$:�<!@E�>1�4�D]@$1�F$-�BgkW6`-7"C%+<M-&B>�!%7"C)�(2@E#�XE1?@E�!'�(2#�-&"$%+<M'!,2"$#W)7K

�N@E1�%&(*)b6f��(2#!B>�!4?)�1?6t%&-&,9,24z:i@E1�D{<!(9%+<p)3<!-�1�-�(94�@E#!,*6m@$#!-H'!,2"$#W)7xC)�<!-� �"C)3%+<!(9#!X=(94�-�/>"$%�)7K�ub#l4?@E 8-H%&-�,2,24�x<!@SD]-�JE-�1&x�)3<!-�1�-�(94m 8@E1�-8)3<N"$#^@E#!-�'!,2"$#W)7Kg�A#>-G-�/>"$ 8'!,9-G(24tÅfLw@$)�@E1&��-�<!(2%�,2-�4p"$#!BÃ��"$4�4?-&#!X$-&18¡H"$1�]@0B!(2-�4�Å�O�¸Iu�¡��WÙIP�Vz(2#h�Y-�)�1�@E(*)7K��N@E1�%&-�,2,94�:i@E1�D{<!(9%+<8)�<!-&1?-�"C1�-� 8@E1�-])�<N"$#h@E#!-�'>,\"$#W)7xE)�<!-{(2 8'!�>)3"C)3(9@E#(24AkN"C4�-&Ba@E#�)�<!-h"$4�4?�! 8'>)3(9@E#g)3<N"�)A)3<!-p:i1�"$%�)�(2@E#�@$:v<!@$�!1�4YD5@E1�FC-&B�kf6M-7"$%+<e-&B>�!%7"C)�(2@E#aXE1?@E�!'�(94Y)3<!-43"$ 8-h:i@E1m"C,2,�'!,2"$#W)34~(2#a)3<!-843"$ 8-8%&-&,9,�K�ub#e)3<!-G�Y-�)�1�@E(*)�-�/>"$ 8'!,2-Cx�)3<>(24~"$4�4?�! 8'>)3(9@E#s"$,9,2@SD{4�ÅfLw@$)�@E1��-&<!(9%&,9-&4�"$#!Bh��"$4�4?-&#!X$-&1]¡H"$1��]@0B!(2-�4�ÅA'!,2"$#W)34�(9#h�Y-�)�1�@E(*)�)3@A<!"SJ$-{B!(9o_-&1?-&#W)�#f�! pkq-&1�@$:q<!@$�!1�4�D5@E1�FC-&B�xk!�>)A1?-&�f�!(91�-&4�)3<!-m:i1�"$%�)�(2@E#w@$:�<!@E�>1�4=D5@E1�FC-&BakW6g%�@E,2,9-&XE-~XE13"CB!�N"C)�-&4&x;(2#!B!(*J0(2B!�N"C,24�D{(9)�<g4�@E 8-m%�@E,2,9-&XE-Cx<!(2X$<w4?%+<!@I@$,�XE1�"$B!�N"�)3-&4�"$#!Bw<!(2X$<w4?%+<!@I@$,zB>1�@E'w@E�>)�)3@8k_-�)3<!-t43"$ 8-A:i@E1�"$,2,�'>,\"$#W)34�(2#�)3<!"C)=(9#!B!�!4�)31�6EK��<!-��A"�)+"�¥='!'q-&#!B>(*/�'!1�@SJ0(2B>-&4t"wB!-�)+"$(9,2-&BeB!-�4�%&1?(2'>)�(2@E#�@$:])�<!-`¡]-�#!4��>4p@$:��z@E'!�!,2"C)3(9@E#�"$#!Br¡]-�#!4��>4@$:5LM"$#f�>: "C%�)3�>1�-&1?4A"$#!Bg)�<!-m �"C)�%+<!(2#!XG"$,2X$@E1�(*)3<! |KH��<!-p �"C)�%+<!-&B�4�"$ �'>,2-~(24�"GkN"$,2"$#!%&-�Bg'N"$#>-&,�D{(9)3<×WU>xÏ�$R>P�'!,2"$#W)34&K��Y-�4�%�1�(2'I)3(9J$-�4?)+"�)3(24�)3(9%&4H:i@E1H)�<!-� G"C)�%+<!-&B|43"C �'!,9-�"$1�-A1?-&'q@E1?)�-&B|(2#���"$k!,2-lP$K

¸0(2#!%�-�'!,2"$#W)34t(2#e%&(9)�(2-�4~D{(*)3<^ 8@E1?-�-�B!�!%7"�)3-&Br,2"$kq@E1A:i@E1�%�-G"$1?-G 8@E1�-h,9(2F$-�,96�)�@M-& 8'!,9@�6a-�B!�!%&"C)3-�BD]@$1�F$-�1�4�x]@Ek>)3"$(2#>(2#!XM"gXE@I@0Bs-�4?)3(9 G"�)3-G@C:�)�<!-�4?F0(9,2,vB!(24�)31?(2k!�>)�(2@E#^(2#s-&"$%+<Ã'!,\"$#W)l(94m'N"C1?)3(9%&�!,2"$1�,*6a(2 l�'_@$1?)+"C#f)&K��."$(2,9(2#!Xl)3@�"CB!-&�f�N"C)�-&,*6M%�@E#W)31�@$,�:i@E1�)3<!-p4?Ff(2,2,z,2-�JE-�,�@$:�D5@E1�FC-&1�4A(9#M)3<>-p'!,\"C#f)Y G"76|1�-�4��!,*)A(2#"$#a�!'WDH"C1�Bak!(\"C4Y(2#g)�<!-l-&4�)3(2 �"C)�-&Bg4?'!(2,9,2@SJE-�1&K���@|"$4?4�-�4�4A)3<!-l�f�N"C,2(9)b6w@$:�)3<>-p G"�)3%+<a@$:�D]@$1�F$-�1�4~"$#!B'!,\"C#f)�4&xzuYB!@�)bD]@|)3<!(9#!XE4�K���(91�4?)&x�uY1�-}�b-&4�)3(9 G"C)�-h"$,2,�)�<!-8 �@0B!-&,94A(2#a)3<!-8'N"$'q-&1��!4?(2#!Xw"$#^"$,9)�-&1�#!"C)3(*JE-4?)�13"C)�-&X$6�)�@|%�@E#W)31?@E,�:i@E1Y)3<>-84?Ff(2,2,�,2-�J$-&,�(9#�"`'!,2"$#W)7Kh¥=,*)3<!@$�!XE<g)3<>-G¡]-�#!4��>4m@$:HLM"$#f�>: "$%�)3�!1?-&1?4mB!@0-&4#!@$)m1�-&'q@E1�)m)3<>-�-&B!�>%7"C)�(2@E#sB>(24?)�1�(9k!�>)3(9@E#e(2#s"w'!,\"$#W)&x�(9)mB!@0-&4m1?-&'q@E1?)t)3<!-G#0�> pk_-�1m@$:{<>@E�!1�4~D]@$1�F$-�BkW6�'!1�@0B!�!%�)3(2@$#w"C#!Bw#>@E#�'!1�@0B!�!%�)3(2@$#�D5@E1?F$-&1?4=(9#|-&"$%+<|'!,\"$#W)Qí·kN"$4?(2%&"$,2,*6�<>@E�!1�4{D5@E1�FC-&BMkW6`k>,2�!-~"$#!BD{<!(9)�-l%&@E,9,\"$1�D]@$1�F$-�1�4�K8��<>-�"CB>JC"$#W)+"$XE-l@C:5�>4�(2#>X|(9#>:i@E1? G"C)�(2@E#w@E#�'!1?@IB!�>%�)3(9@E#e"$#!Ba#!@E#a'!1?@IB>�!%�)�(2@E#D]@$1�F$-�1�4�(24])�<N"C){#!@l(9 �'>�>)+"C)�(2@E#�(24H1?-&�f�!(91�-&B;K5�v6��!4?(2#!Xh-�/I%�,2�!4?(9JE-�,96`¡]-&#!4?�!4�@C:�Lw"$#f�>: "$%�)��!1�-�1�4{BN"C)3">x

P�Î

Page 18: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

)3<!(94�4?)31�"C)3-�X$6a1�-�B!�!%�-&4t)�<!-�"$ �@$�!#W)t@C:H 8-7"$4?�!1�-� �-�#f)~-�1�1�@$1~)�<N"C)t"$1�(94�-�4�:i1?@E Ñ)�<!-�(9 �'>�>)+"C)�(2@E#;K8�A#)3<!-�@$)�<!-&1v<N"$#!B;xf)�<!(24v4�'q-&%�(9ZN%&"C)3(9@E#h<N"$4�)3<!-�B!(943"$B>JC"$#W)3"$XE-�)3<N"�)5)�<!-{B!(24�)3(2#>%�)3(9@E#hk_-�)bD]-�-&#`'!1?@IB>�!%�)�(2@E#"$#!B�#!@E#s'!1?@IB>�!%�)�(2@E#aD]@$1�F$-�1�4p �"76e"$%&%�@E�!#W)p@$#!,96�(9 �'q-&1�:i-&%�)3,96M:i@E1AD]@E1?F$-�1�4&¨�4�Ff(2,9,�,2-�JE-&,yK�� ÿ �� �'!(91�(��%7"$,9,96$xWu�4�<!@SD·kq-&,9@�DÆ)3<N"�)]%�@E#W)31�@$,2,2(9#!XY:i@E1�D5@E1�FC-&1�4�¨>(9 �'!�I)3-&B8-&B>�!%7"C)�(2@E#�"$#!B�%&@E#W)�1�@E,9,2(2#>XY:i@E1�D]@E1?F$-�1�4&¨'!1�@0B!�!%�)3(9@E#ñþC#!@$#w'!1?@IB>�!%�)�(2@E#�4?)3"C)3�>4&x. G"CF$-&4�,2(*)�)�,2-=B>(9o_-&1�-�#!%&-CÓ]-� �'!(91�(9%7"$,_-&4?)�(2 �"C)3-�4{@Ek>)+"C(2#!-�B|�>#!B!-&1)3<!-A)bD5@�"$,*)3-�1�#N"C)�(9J$-A"$'!'!1?@W"$%+<!-�4="C1�-�4�(9 �(9,\"$1�K

¥�4�"m4?-&%&@$#!B`DH"76G)�@p%+<!-�%+FG)3<!-=1�-&,9(\"$k>(2,2(*)b6p@$:�)�<!-A �"C)3%+<!-�BGD5@E1�FC-&1���ZN1� µBN"C)+"IxIu�-&4�)3(9 G"C)�-='!,2"$#W)�n,2-�JE-&,0DH"CXE-H-&�f�N"�)3(2@$#!4&K�u�:q)�<!-] �"C)�%+<!(2#!X�(24�%&@E1?1�-&%�)�"$#!Bm �-&"$4��!1?-& 8-&#W)�-�1�1�@$1�(24�#!@$)�)3@0@Y,\"$1?XE-$x�u�-�/I'q-&%�)DH"CXE-=-��0�!"C)3(9@E#�%�@I-�Ô8%&(2-�#W)345)�@tkq-�%&,2@$4�-�)3@~)3<!-�@E#!-�45�!4?�N"$,9,96p:i@E�>#!BG(9#8)�<!-�D]"$XE-�-&�f�N"�)3(2@$#�,9(9)3-�13"C)��!1�-CKu]4?<!@SDÒ(2#`)3<>-~¥�'!'q-&#!B!(�/`)3<!"C)�)3<!(94�(2#`: "$%�){4�-&-� �4{)3@hkq-A)3<!-�%7"C4�-$K

ub#Æ(2#W)3-�1�'!1?-�)�(2#!X�)3<>-M1�-�4��!,*)348um'!1?-&4?-&#W)`kq-&,2@SD�x5(9)8(24h(2 8'q@E1?)3"$#W)p)3@�k_-&"$1h(2#� �(9#!B�"�,2(9 �(*)+"C)�(2@E#@$:{)3<!-GBN"C)+"IKe��<>-`,2@E#!X$(9)3�>B!(2#N"C,�BN"C)+"C4�-�)m)3<N"C)pu~�>4�-`(24m#!@$)l#!-�%&-�4�43"C1�(2,*6^1?-&'!1?-&4?-&#W)+"C)�(9J$-|@C:�)3<!-�:i�!,9,'_@$'!�!,\"�)3(2@$#`@$:�'>,\"$#W)34�x!kq-&%7"C�!4�-~(9){@E#>,96�(9#!%&,9�!B!-�4�'!,\"$#W)�4{)�<N"C)�"$1?-�@Ek!4�-�1?J$-&BMkq@$)�<w(9#eP7TERW�p"$#!BePSTETE�IK�Y#!-A%&@E#>4�-&�f�!-�#!%&-~(245)3<N"C)H,\"$1?XE-='!,2"$#W)34�"C1�-Y 8@E1�-�,2(9F$-&,*6h)3@lkq-A(2#G)�<!-A43"$ 8'!,9-$K{O"��@$)�-$x><>@�D5-�J$-&1�x.)�<N"C)kW6`%&@E#W)�1�@E,9,2(2#>Xm:i@E1H%&"$'!(9)3"$,�"$#>B|,2"$kq@E1](9#!'!�>)�4&xNu5"$ µ-�o;-�%�)3(*JE-�,96`%�@E#W)31�@$,2,2(9#!Xt:i@$1�'!,\"$#W)�4?(2[�-$KÏVhub#�4�@$ �- �@0B!-�,24&xWu�1�-���D]-�(2XE<W)�)3<>-�@Ek>4�-&1�JC"C)3(9@E#!4�4�@~)3<N"C)�)�<!-�B>(24?)�1�(9k!�>)3(9@E#l@$:;'!,\"$#W)v4�(9[&-�"$#!B�@$)3<>-&1�@Ek!4?-&1?JC"$k>,2-&4'!,\"C#f){%+<!"$13"$%�)3-�1�(24�)3(9%&4{1�-�'!1�@0B!�!%�-&4{)3<!-�B!(94?)31?(2k!�I)3(2@$#`(2#`)3<!-�@E1?(2XE(9#N"$,q'_@$'!�!,\"�)3(2@$#aO 4?-&-m¸I-&%�)3(2@$#MÎ0KÏØWV}K � '

��<>-mF$-�6M(9#!B!-�'_-�#!B!-&#W)YJC"$1?(\"$k>,2-�(24�%&@E,9,2-�XE-t4?<N"$1?-m(2#|)3<!-t%&(*)b6w@$�>)34?(2B!-~)3<!-t(2#!B!�>4?)31�6Ex ú�stc�dfebK{u��!4�-)3<!-~¡]-�#!4��>4�@$:���@E'!�>,\"C)�(2@E#8)3@p@EkI)+"$(9#`"$#`-&4�)3(9 G"C)�-=@$: ú�stc�d�e�K�¥=#�"$,*)3-�1�#N"C)�(9J$-=4�'q-&%�(9ZN%&"C)3(9@E#GD5@E�!,9B`k_-)3@A�!4?-{"7JE-&1�"$XE-H6$-7"$1?4v@C:_4?%+<!@0@E,2(9#!X=(9#!4?)�-7"$Bh@$:.%�@E,2,9-&XE-54�<N"$1?-$K���<>-&1�-{(94�#!@$)�@EkWJI(9@E�!4�"Y'!1?(2@E1?(I1?-7"$4?@E#p)3@%+<!@0@E4�-�@E#!-= �-&"$4��!1?-A@$:�"$XEXE1?-&XW"�)3-Y<f�! �"$#�%7"$'>(9)+"C,_@SJE-�1�)3<!-A@$)�<!-&1�K�� ( u�1�-���-&4�)3(2 �"C)�-&B�"$,9,q)�<!-A �@0B!-�,24�!4�(9#!Xs"7J$-&13"CXE-M4?%+<!@I@$,2(2#>Xe(9#!4?)�-7"$BÆ@$:Y%�@E,2,9-&XE-�4?<N"$1�-Cx�"$#!BÆ@Ek>)3"$(2#!-�BÆ1?-&4?�!,9)�4�)3<!"C)�"$1�-|�f�N"$,2(*)+"C)�(9J$-&,964�(9 �(9,\"$1v)3@l)3<!-�@E#>-~'>1�-&4?-&#W)3-�Bg<!-�1�-$K

© � ×¾á÷ÔJàOÕ�éOÜ�à°ÔÂàHÒ'ÏzéOÍ'Ó`Ò�Û Õ�óªàOÕ�éHÛJâ�öZÕ�ÛÂÙ�Ò�Ñ�Ózä�ÏOÕ�Ï�ïOÛJÕzÑOéHØsÔJÎÐÕ�Ï�öZÕ�ÛÂÙ�Ò�ÛÚâ;ÎÅâ�Ø�Õ�ÛJÛÂÒ�áßÌAÔÂÒ�Ñ�ö;ÎÐÔÂà±ÔÂàOÒ¯ÏzéOÍ�ÓRÒ�ÛFÕ�óªàOÕ�éOÛÚâö!Õ�ÛJÙ�ÒñѽÓzä�Ø�Õ�áßáÐÒ�Ü�Ò Ü�ÛÚÌ�ÑpéHÌAÔÂÒñâ�Ý8ÔÂàHÒ(ØqÕ�ÛJÛJÒ�áÅÌ�ÔÂÎßÕ�Ï�Îßâ4ÏHÕAÔ)ïRÒ�ÛÂó}Ò�ØsÔv«¦Ö¾Õ�Í1â�ÝHÖ�éOÏOÏHÒ(ÌAÏHÑuõ%ÛJÕ�âÂÙ�Ò]�?���bÿ�­sô©", ËZàHÌ�æ�ÒFÌAáÅâ»Õ�áßÕzÕ�Ù�ÒñÑ�ÌAÔ4ö;àHÒqÔÂàHÒ�Û;ÔJàOÒ@ïOÛJÕ�ÓHÌ�ÓOÎÐáßÎÐÔÆä�ÔÂàHÌAÔ¾Ì'ïHáßÌ�Ï�Ô;Ò�ìzÎÅâ»ÔJâ4ÎßÏm�����&�@ÓOépÔ)ÏHÕAÔ;ÎÐÏp��������ÎÅâ;ØqÕ�ÛJÛJÒ�áÅÌ�ÔÂÒñѽö;ÎÐÔÂàÔJàOÒ(ØÚàHÌAÏHÜ�ÒFÎÐÏuÔJàOÒ(ØqÎÐÔÆä�ØqÕ�áÐáßÒ�Ü�Ò@â»àHÌ�ÛÂÒ�ôbËZøHÏHÑ�ÔJàHÌ�Ô;ÔJàOÎßâ)Îßâ4ÏOÕ�Ô;ÔÂàOÒ(Ø�Ì�âÂÒ�ô©"1 Ë©Ï�ïOÛJÒ�æzÎßÕ�éHâ!ö!Õ�ÛJÙ1ËZàHÌ�æ�Ò�é`â»ÒñÑuØ�Õ�áßáÐÒ�Ü�ÒFâ»à`ÌAÛJÒH«¦Þ°Õ�ÛJÒqÔÂÔÂÎ�ó}Õ�Û»ÔJàHØqÕ�ͯÎßÏOÜ7­sô

PSØ

Page 19: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

� ÛÝà ä��7���7�94pÞ���æYç���Þ� �ç

�ê8�: ©«G�>5JoH�����A�U�A[G�¶?pHQ<�R >�HBA!?EP�M­©ìOQP9W�FL£zHQ<�PVJ§Æ.F.JL£zHQ<�P�JL?

u5#>@�DÐ)3�>1�#�)3@p)�<!-A-& 8'!(91�(2%&"$,.1�-�4��!,*)34&K�¥�4�B!-&'q-&#!B>-&#W){J$"C1�(\"Ck!,2-CxIu�%7"C#|�>4�-A-&(*)3<!-�1]JC"$,2�>-Y@$:z4�<!(9'! 8-&#W)34@E1�JC"$,9�!-5"$B!B!-�B�x$D{<!(9%+<p(24�JC"$,2�!-v@$:N4?<!(2'> �-�#f)�4� 8(2#f�!4z%&@E4�)�@$:. �"C)�-&1�(2"$,24�K���1�-�J0(9@E�!4�,9(9)�-&13"�)3�!1?-54?�!XEXE-�4?)34)3<N"�)�#>-&(9)�<!-&1� 8-7"$4?�!1�-�(94�'_-�1?:i-&%�)7K � � �� 8'!(91�(2%&"$,2,*6�(9)� �"$F$-�4�,9(9)?)3,2-�B!(9o_-&1?-&#!%�-vD{<>(2%+<~B!-&'q-&#!B>-&#W)�JC"$1?(\"$k!,9-(24��!4?-&B�K�u_'>1�-&4?-&#W)�1�-&4?�!,9)�4�kN"$4?-&B~@E#AJ$"C,2�!-�"$B>B!-&B�x�k!�>)�uq<N"7JE-�1?-��b-�4?)�(2 �"C)3-�Bt"C,2,C)�<!-� 8@IB!-�,24��>4�(2#>X{JC"$,9�!-@$:�4�<>(2'! 8-&#W)34�"C#!Bg@Ek>)3"$(2#>-&Bg(9B!-&#W)3(9%7"$,z1�-�4��!,*)34�KAu�"C,24�@G1�-&'q@E1�)Y1�-�4��!,*)34Yk!"$4�-�Be@$#MJC"$,2�!-t@$:v4�<!(9'! 8-&#W)34(2#���"$k!,2-lP7Uhkq-&,9@SD�K

u_k_-�XE(2#~kW6~'!1�-�4�-&#W)�(2#!X�%&1�@$4�4Qnf4�-&%�)3(9@E#N"$,0-&4�)3(2 �"C)�-&4�@$:N'!,2"$#W)�n0,9-�J$-&,W'!1?@IB!�>%�)3(9@E#�:i�!#!%�)�(2@E#>4&K�¡]@$,2�! 8#!4Ph"$#!Be�G(9#g��"Ck!,2-p�G1�-�:i-�1=)3@�"�4�'q-&%&(*ZN%7"�)3(2@$#gD{<!-&1?-p)3-&%+<>#!@E,2@$X$6M(94A¡]@Ek>kI�Q�Y@E�>XE,\"$4�KA��<!-p%�@I-�Ô�%�(2-�#f)qr@E#�%&@E,9,2-&X$-l4�<N"$1?-h@E�>)34?(2B!-h)3<>-8(9#!B!�!4�)31�6a(2#a%&@E,9�! 8#!4hPG"$#>Bs�`(24�U>K�R$×|(2#ÃPSTETE�|"$#>B^U>K�R>Ph(2#�PSTERE�Ix(2#!B>(2%7"�)3(2#>Xp)3<N"C)�"h@E#!-~'_-�1�%�-&#W)+"$X$-t'q@E(2#W){(9#!%&1?-7"$4?-t(9#�)�<!-~@�J$-&1�"$,2,�4?<N"$1�-~@$:�%&@E,9,2-&X$-AXE13"$B>�N"C)3-�4{(2#�)3<!-%&(*)b6sOi-�/I%&,9�!B!(9#!X�)�<!-m(9#!B!�!4�)31?6w"8'!,\"$#W)�k_-�,2@E#>XE4�)�@fV�(24�"$4�4?@I%�(\"C)�-&BwD{(*)3<M"$#g(2#>%&1�-&"$4�-t(2#|'!1�@0B!�!%�)3(*JI(*)b6kW6|U>KÏR�`K���<>1�@E�!X$<|)�<!-�'N"$'q-&1&xN4�)+"$#>BN"$1�B|-&1?1�@E1?4�"$1�-�%&@$1�1�-�%�)�-&B�:i@E1�%&(*)b6WnW6E-7"C1�%�,2�!4�)3-&1?(2#!X>K

��<>-� 8@IB>-&,24�%�@E#W)31�@$,.:i@$1v%&"$'!(*)+"$,N4�)3@0%+FqxI<!@E�!1?4vD5@E1?F$-&B`kW6h4?F0(9,2,9-&B�"$#!BG�>#!4�Ff(2,9,2-�B�,2"$k_@$1&xf"�B!�! 8 m6-&�f�N"$,z)3@�@E#!-m(*:�)3<>-m'!,2"$#W)=kq-&,9@E#!XE4{)3@G"G p�!,*)3(�nf�!#!(9)�Z!1� |x_"C#!B�����B!(2XE(*){(2#!B>�!4?)�1?6|B!�! 8 �(9-&4�K=¡H"C'!(9)3"$,4?)�@I%+FG:i@$1H-&�f�!(9'! �-�#W)�"$#!B`4?)�1��!%�)3�!1?-&4�(24H 8-7"C4��!1?-&B`:i1�@E ²)3<>-Ak_@0@EFhJ$"C,2�!-�4HB!-�ºN"C)3-�BwkW6�%&"$'!(*)+"$,_4?)3@0%+FB!-�ºN"C)3@E1?4&K � � ��@E�>1�4{D]@E1?F$-�BMkW6��!#!4?F0(9,2,9-&B`D]@$1�F$-�1�4="$1�-�<!@E�>1�4{D]@E1?F$-�BMkW6`D]@$1�F$-�1�4�D{<!@�<!"SJ$-p"l<!(9XE<I�4�%+<!@0@E,�B!-&XE1?-&-l@E1�,2-�4�4&K���@E�!1?4=D]@$1�F$-�Bakf6w4�Ff(9,2,2-�BMD5@E1�FC-&1�4�"C1�-p<!@$�!1�4=D5@E1?F$-&BakW6w%&@E,9,2-&X$-mXE1�"$B!�N"C)�-&4@E1]D5@E1�FC-&1?4HD{(9)3<G4�@E 8-Y%&@$,2,2-�XE-$K�c�"C)3-�1&x>u�4?<!@SD¢)�<N"C)�"C,9)3-�1�#N"�)3(9J$-=B!-�ZN#!(*)3(2@$#!4]@$:�4?Ff(2,2,9-&BG"$#!B`�!#!4?Ff(2,2,9-&B,\"$kq@E1Y60(2-�,2Ba4�(9 �(9,\"$1�-&4�)3(2 �"C)�-&4&K �"� ¡]@E,9�! �#>4t�|"$#!Be×|1�-�:i-�1A)3@w"|4?'_-�%&(9Z!%7"C)�(2@E#aD{<!-&1?-8)�-&%+<!#>@E,2@EXC6a(24

© � í¾Ò�áßáÐÒ�ÛJâ»ÔÂÒ�ÎÐÏQÝ��)Ò�éHÍ�Ì�ÛÂÙ>Ì�ÏHÑ0õbÛÂÕ8â»Ù�Òh«i�?�����&­�ï`Õ�ÎÐÏ8ÔuÕ�épÔuÔÂàHÌAÔ�æ�ÌAáßéOÒ�Ì�ÑOÑpÒñÑ>àHÌ�â½ÔÆö!Õ�Ì�ÑOæ�Ì�Ï8ÔJÌAÜ�Ò�â�Õ�æ�Ò�Û�æ�Ì�áÐéHÒ±ÕAóâÂàOÎßïOÍ�Ò�Ï8ÔJâ�ô�þ­ÎÐÛÚâÆÔñݤ̰æ�ÌAáßéOÒI�pÌ�ÑOÑpÒñÑDâ»ïRÒ�Ø�Î÷ø`Ø�Ì�ÔJÎÐÕ�Ï5Ø�ÌAÏ9ÓRÒ�ÑpÒ�ÛÂÎßæ�ÒñÑ�ó}ÛÂÕ�Í ïRÕ�áÅÌAÛ'ïOÛÂÕpÑpé`ØsÔÂÎßÕ�ÏDó}éHÏHØsÔJÎÐÕ�ÏHâ�ù¯Õ�ÏHÒ½ÎÐÏ9ö;àHÎßØÚàÔJàOÒ�Ò�áßÌ�âÆÔJÎßØ�Î÷ÔÆä�ÕAóªâ»éHÓHâÆÔJÎ÷ÔJépÔÂÎßÕ�Ï°ÓRÒqÔÆö!Ò�Ò�Ï°Í1Ì�ÔÂÒ�ÛÂÎÅÌAáÅâ)Ì�ÏHÑuæ�Ì�áÐéHÒI�zÌ�ÑOÑpÒñÑ�ÎßÏ°ÎßÏpøHÏOÎÐÔÂÒ�µ�Ì�ÏHÑuÕ�ÏOÒ�ÎÐÏ°ö;àOÎÅØÚà�ÔÂàHÎßâ¾Ò�áÅÌ�â»ÔÂÎÅØqÎÐÔÆä�ÕAóâÂéOÓHâ»ÔÂÎÐÔÂépÔJÎÐÕ�ϽÎÅâeî�Ò�ÛJÕHô­ãpÒ�ØqÕ�ÏHÑwÝzÌ@æ�ÌAáßéOÒ)Õ�ó%â»àOÎßïOÍ�Ò�Ï8ÔZâÂïRÒ�ØqÎÐø`Ø�Ì�ÔÂÎßÕ�Ï1ÛJÒ��8éOÎßÛJÒ�â®ÔJÕ�ÎßÏHØqáßéHÑpÒ)æ�Ì�áÐéOÒ�ÕAówÍ1Ì�ÔJÒ�ÛJÎßÌ�áßâ¤Õ�Ï�ÔÂàOÒ�ÛÂÎßÜ�à8ÔàHÌ�ÏHÑ1âÂÎßÑpÒ�ô­õ4àHÎßâZâ»ïRÒ�Ø�Î÷ø`Ø�Ì�ÔJÎÐÕ�ϯÍ1Ì�ä'Ó`Ò)ïHÛÂÕ�ÓOáÐÒ�Í1Ì�ÔÂÎÅØ4Ü�Îßæ�Ò�Ï�ÔJàOÒ)ïRÕAÔJÒ�Ï8ÔÂÎÅÌAá`Ò�ÏHÑpÕ�Ü�Ò�ÏOÒ�ÎÐÔÆä(ÕAówÍ1Ì�ÔJÒ�ÛJÎßÌ�áßâ�ôbí¾Ò�áßáÐÒ�ÛJâ»ÔÂÒ�ÎÐÏ1Ò�ÔeÌAá�ô« �?������­eÒqìpïRÒ�ÛJÎÐÍ�Ò�Ï8Ô4ö;Î÷ÔJà�Ó`Õ�ÔÂà�ÔÂàOÒFæ�ÌAáßéOÒ@Ì�ÑOÑOÒ�Ñ�âÂïRÒ�ØqÎÐø`Ø�Ì�ÔÂÎßÕ�Ï�ÌAÏ`ѽö;ÎÐÔÂà�Ì'ïHÛÂÕpÑpéHØqÔÂÎßÕ�Ï�ó}éOÏHØsÔJÎÐÕ�Ï�ö;àHÒ�ÛJÒ Í1ÌAÔÂÒ�ÛJÎÅÌAáÅâZÌ�ÛÂÒÕ�Ï1ÔÂàOÒ�ÛÂÎßÜ�à8Ôeà`ÌAÏHѽâÂÎÅÑpÒ�ÝzÌAÏHѽÎÐÏHâ»ÔÂÛJéOÍ�Ò�Ï8ÔÚÌAáRæ�Ì�ÛÂÎÅÌAÓHáÐÒñâªÌAÛJÒ)éHâÂÒ�Ñ�ÔJÕ'Ì�Ø�ØqÕ�éOÏ8Ô¤ó}Õ�Û!Ò�ÏHÑOÕ�Ü�Ò�ÏOÒ�ÎÐÔÆä¯ÕAówÍ1Ì�ÔÂÒ�ÛÂÎÅÌAáÅâ�ô­ê;Òñâ»éHá÷ÔÚâZÌ�ÛÂÒâÂÎÐÍ�ÎßáßÌ�Û;ÎÐÏuÔJàOÒFÔÆöZÕ1âÂï`ÒñØqÎÐø`Ø�ÌAÔÂÎßÕ�ÏHâ�ô©"� õ4àOÒ�ÑpÒ�`Ì�ÔJÕ�Û ÎßâFÕ�ÓpÔJÌ�ÎÐÏOÒñѱÌ�â)ÔJàOÒ�ÛJÌAÔÂÎßÕ�ÕAóeÔÂàOÒ1ØqéHÛÂÛJÒ�Ï8Ô ÑOÕ�áßáßÌ�Û�ÓRÕzÕ�Ù°æ�ÌAáßéOÒ'ÔÂÕuÔÂàOÒ�ØqÕ�ÏHâ»ÔJÌAÏ8Ô@ÑpÕ�áßáÅÌAÛ æ�Ì�áÐéHÒ�ó}Õ�Û�ÔJàOÒÔÆö!ÕAÿ©ÑpÎßÜ�ÎÐÔ4ÎßÏHÑpé`âÆÔJÛÂä1ó}ÛJÕ�Í ÔÂàOÒ(å!éOÛJÒ�Ì�é�Õ�ó®ýZØqÕ�ÏHÕ�Í�ÎßØ ×)Ï`ÌAáßäzâÂÎÅâ�«�þOÕ8âÆÔJÒ�ÛñÝOí¾Ì�á÷ÔJÎÐö4ÌAÏOÜ�Ò�Û)Ì�ÏHÑ �FÛJÎßî�ÌAÏt�?������­qô©"² õ4àOÒ(Ø�ÕzÒ��½ØqÎßÒ�Ï8Ô;Õ�Ï�áßÕ�ܯÏ8éHÍ�ÓRÒ�Û)Õ�óbàOÕ�éOÛJâ4ö!Õ�ÛJÙ�ÒñѽÓzä�éHÏHâ»ÙzÎßáÐáßÒ�Ñuö!Õ�ÛJÙ�Ò�ÛJâZÎßâ�±Hô �°ÿ�ÎÐÏp�?�����OÝ8Ì�ÏHÑ�ÔÂàOÒ(Ø�Õ�ÛJÛÂÒñâ»ïRÕ�ÏHÑOÎÐÏOÜØ�Õ8Ò��½ØqÎßÒ�Ï8Ô@ó}Õ�Û(âÂÙzÎÐáßáÐÒñѱö!Õ�ÛJÙ�Ò�ÛJâ�ÎÅâ�±Oô °��Oô�õ4àOÒA��������ØqÕzÒ��½Ø�ÎÐÒ�Ï�Ô(Õ�Ï�âÂÙzÎÐáßáßÒ�Ñ�áßÌ�Ó`Õ�Û@ÎßâFáÅÌAÛJÜ�Ò�Û�ÔJàHÌAÏ�ÔÂàHÒA�?���&�½Õ�ÏOÒ�Ý%ö;àOÎÐáßÒÔJàOÒl�?������Ø�ÕzÒ��½ØqÎßÒ�Ï8Ô1Õ�ÏWéOÏHâÂÙzÎÐáßáÐÒñÑ�áÅÌAÓRÕ�Û�ÎÅâ1â»Í1Ì�áÐáßÒ�Ûñô�õ4àOÎÅâ�ÎÅâ1ØqÕ�Ï`â»ÎÅâÆÔJÒ�Ï8Ô1ö;Î÷ÔJàWÔÂàOÒ�ÎßÏHØqÛJÒ�Ì�â»ÒñÑ5ÛJÒqÔÂéHÛÂÏ�ÔÂÕ9âJØÚàOÕzÕ�áßÎÐÏOÜÑpÕpØ�éOÍ�Ò�Ï8ÔÂÒñÑ�ÎßÏ�â»ÔÂéHÑOÎÐÒñâ�ÔJàHÌ�Ô¯ó}ÕpØqéHâ¯Õ�Ï�ö4ÌAÜ�Òñâ�ô�Ë(àHÌ�æ�Ò�Ò�ìzïRÒ�ÛJÎßͯÒ�Ï8ÔÂÒ�Ñ�ö;Î÷ÔJàWÌ�á÷ÔJÒ�ÛJÏHÌ�ÔJÎÐæ�Ò�ÑpÒ�øHÏOÎÐÔÂÎßÕ�ÏHâ�Õ�ó¾â»ÙzÎßáÐáßÒ�Ñ�ÌAÏHÑéOÏ`â»ÙzÎßáÐáßÒ�Ñ�áÅÌAÓRÕ�Ûñô!þHÕ�Û)Ò�ìOÌAÍ�ïOáßÒ�ÝOÎßÏ�â»Õ�Í�Ò�â»ïRÒ�Ø�Î÷øRØ�Ì�ÔJÎÐÕ�ÏHâ;Ë4ÌAáßáÐÕ�ö�ó}Õ�Û)ó}Õ�éOÛ â»ÙzÎßáÐáQÜ�ÛÂÕ�éOïHâ4ÎßÏHâ»ÔÂÒ�Ì�Ñ�ÕAó®ÔÆö!ÕHùªáßÒ�âJâ4ÔÂà`ÌAÏ°àOÎßÜ�àâJØÚàOÕzÕ�á�Ý�àOÎÐÜ�à�âJØÚàOÕzÕ�á�ÝRâÂÕ�Í�Ò¯ØqÕ�áßáßÒ�Ü�Ò¯ÌAÏHÑ�ØqÕ�áÐáßÒ�Ü�Ò�ô Ë)àHÌ�æ�Ò¯ÌAáÅâ»Õ�Ò�â»ÔÂÎßÍ�ÌAÔÂÒñÑ�Í�ÕpÑpÒ�áÅâ ö;àOÒ�ÛJÒ(ÔJàOÒ��Zü â Ì�ÛÂÒ¯ÌAáßáÐÕ�ö!Ò�Ñ°ÔÂÕ�æ�Ò�ÛJä

P�Ù

Page 20: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

)31�"$#!4�,9@EX!K���<!-�%�@I-�Ô�%�(2-�#f)�@E#�%&@$,2,2-�XE-Y4?<N"$1�-~(24�(9#WJ$"C1�(\"C#f)])3@l)3<!(94�%+<N"$#!X$-$Kut#!@SD )3�!1?#�)�@^,9@E#!XE(*)3�!B!(9#N"$,5 �@0B!-&,94&K���"Ck!,2-|��1?-&'q@E1?)�4h-&4?)�(2 �"C)3-�4�@C:=JC"$1�(2"$#W)34h@$:=-&�f�N"C)�(2@E#�×!K

¡]@E,2�> �#sPl(94Y"$#!"$,2@EX$@E�!4�)�@G)3<>-l �@0B!-&,94�(9#g)+"$k>,2-l�8k!�>)�"$B>B!4A'!,\"C#f)�Z>/I-&Ba-�o_-&%�)34�KtubB!-�#W)3(9Z!%7"C)�(2@E#�@$:)3<!-{4?'!(2,9,2@SJE-�1�%&@E 8-&4�:i1?@E jÀ+¼>Á$Ë�¸�¹+¾�(9#l'!1�@0B!�!%�)3(9J0(*)b6l"$#!Bh%�@E,2,9-&XE-H4?<N"$1?-�kq-�)bD5-&-�#MPST$RW�Y"$#!B�PSTETE�IK���<!-%&@0-�Ô8%&(9-&#W)~@E#�%&@$,2,2-�XE-p4?<N"$1�-l(9#�%&@E,9�! 8#sPh(24AU>KÏÙC×!Kt��,\"$#W)YZI/>-�B�-�o;-�%�)�4~'>�!1�XE-l-�4?)�(2 �"C)3-�4Y@$:v'_-�1� �"��#!-&#W)�'>,\"$#W)�"C#!B�%&(*)b68�!#!@Ek!4?-&1�JE-&B|<!-�)3-&1?@EXE-�#!-&(*)b6EK���<!-=Z>/I-�B`-�o_-&%�)�4H-&4�)3(9 G"C)�@E1v G"7684?)�(2,2,.kq-=k!(2"$4�-�B�(9:)3<!-�1�-="$1�-�)31�"$#!4?(9)3@$1?6l�!#>@Ek!4�-�1?J$-&B�: "$%�)3@E1?4�)�<N"C)]"Co_-&%�)vkq@$)3<�%+<N"$#!X$-&4v(2#8%&@E,9,2-&X$-�4�<N"$1?-="C#!BG%+<N"C#!XE-&45(2#'!1�@0B!�!%�)3(*JI(*)b6EK5ub#w)3<>-t4?'_-�%&(9Z!%7"C)�(2@E#!4{(9#w%�@E,2�! 8#!4��Ixq�8"$#!B|×!x.uH(2#!%�,2�!B>-~1?-&4?'_-�%�)3(*JE-�,96�(2#>B!�!4?)�1?6�¹�6E-7"C1B!�! 8 �(9-&4�xv4�)+"C)�-!¹�6E-&"$1�B>�! � 8(2-�4h"$#!BÃ(2#>B!�!4?)�1?6�¹�4?)+"�)3-!¹�6E-&"$1GB>�! � 8(2-�4&Ks��<>-|%�@I-�Ô8%&(2-�#W)34�"$1�-`kq-��)bD]-�-&#�UIK ÎIP~"$#>BwUIK ÙEÙ0K

ub#£)�<!-g4?'_-�%&(9Z!%7"C)�(2@E#£�>4�-&B¶(9#£%&@$,2�! 8#!4MPw)3@r×!xH)�<!-g(2#W)�-&1�%�-&'>)�@$:�)3<!-g'>1�@0B!�!%�)�(2@E#�:i�!#!%�)3(2@$#¶(24"$,2,9@SD]-�BÃ)�@gJC"$1?6Ã"C%&1�@$4�4h'!,\"C#f)�4&x�k!�>)l)�<!-�4�,9@E'_-`%�@I-�Ô8%&(2-�#W)348"$1�-`%�@E#!4�)313"C(2#!-�BÃ)�@ak_-�)�<!-�43"$ 8-$Ksub#1�-&"$,2(*)b6Ex�<!@SD]-�JE-�1&x�(9)~(94~'q@E4?4�(2k>,2-l)3<N"�)t)�<!-�1?-&,2"C)3(*JE-h(2 8'_@$1?)+"C#!%&-l@$:]%7"$'>(9)+"C,�"$#!B^,2"$kq@E1YJC"$1�(9-&4~"$%&1?@E4�4(2#!B>�!4?)�1�(2-�4&K`ub#s%�@E,2�> �#^ÎIxzuA1�-&,2"�/�)�<!-G1?-&4?)�1�(9%�)3(9@E#a)3<N"C)~)3-�%+<!#!@E,9@EX$6a(94~)�<!-�4�"$ 8-G"$%�1�@E4?4m(9#!B!�!4�)31�(9-&4"$#!BG"$,2,9@�DÆ)3<!-�4�,9@E'q-�%�@I-�Ô8%&(2-�#W)34]@$#G%7"C'!(9)3"$,."$#!B�,\"$kq@E1�)3@~JC"$1?6hkW6G���bB>(2XE(*)�(2#!B>�!4?)�1?6EK���<>-�%�@I-�Ô�%�(2-�#f)(2#�%&@$,2�! 8#wÎl(94�4�,9(2XE<W)3,*6G4? G"C,2,2-�15)�@8)�<!-�@E#!-�(2#`%�@E,2�! 8#�×!K

��(2#N"$,9,96$xz(9#s%&@$,2�! 8#sØM)�@sPSU>x�)�<!-`"$4?4��! 8'>)�(2@E#�@$:�¡]@Ek!kI�b�Y@E�!XE,2"$4t)�-&%+<!#>@E,2@EXC6�(94m1?-&,\"�/>-�BÃ"$#!Br" �@$1�-�XE-&#>-&13"C,��z13"C#!4�,9@EX�'>1�@0B!�!%�)�(2@E#r:i�!#>%�)3(9@E#�(24h-&4�)3(2 �"C)�-&B�KÆ��<!-w%�@I-�Ô8%&(2-�#W)G@E#�%&@$,2,2-�XE-`4�<!"$1�-w(24XE-&#>-&13"C,2,96a,9@SD]-�1&x�k!�I)p#!@$)t4?)3"C)3(94?)�(2%7"C,2,96gB!(9o_-&1?-&#W)m:i1?@E Ö)3<!-�@E#!-�@Ek>)+"C(2#!-�B�:i1�@$ Ì)�<!-G%�@E1�1?-&4?'_@E#>B!(2#!X¡]@Ek!kI�b�Y@E�!XE,2"$4�4�'q-&%�(9ZN%&"C)3(9@E#�K

�N1?@E ø��"$k!,9-{�>xWu�%�@E#!%�,2�!B!-�)�<N"C)�-&4�)3(9 G"C)�-&4�@$:q)3<>-�%�@I-�Ô8%&(2-�#W)5@$#8%�@E,2,9-&XE-]4�<N"$1?-{@E�>)34?(2B!-�)�<!-�(2#!B>�!4��)31�6g"$1?-pXE-�#!-&1�"$,2,*6�1�@Ek!�>4?)Y)�@�B!(9o_-&1?-&#W)A4?'_-�%&(9Z!%7"C)�(2@E#!4�KY¥�:§)�-&1Y%�@E#W)31?@E,2,9(2#!Xh:i@E1Y"�'!,\"$#W)&¨�4�@�D{#�,9-�J$-&,�@$:<f�! G"C#m%7"C'!(9)3"$,�x�'!,2"$#W)34�,2@0%7"C)�-&B~(2#t"$1�-&"$4�D{<!-&1?-v)�<!-5@SJ$-&13"C,2,f,2-�JE-&,f@$:><f�! G"C#m%7"C'!(9)3"$,W(2#!%�1�-&"$4�-�Bmkq-&%7"C �- �@$1�-m'>1�@0B!�!%�)�(9J$-m)3<N"C#�4�(2 8(2,2"$1�'!,2"$#W)34Y,9@I%&"C)3-�BM(2#g"$1�-&"$4=D{<!-�1�-p)3<>-p@SJE-&1�"$,2,z,2-�JE-�,�@$:�<f�! �"$#�%7"C'!(9)3"$,B!(2Be#!@$)t%+<N"$#>XE-$K���<>(24~(2#!%�1�-7"C4�-&B^'!1�@0B!�!%�)3(9J0(*)b6�B!@0-&4~#!@$)~4�-�-& )3@wk_-8B!1�(*JE-�#^kW6a(2#!B>�!4?)�1?6a4�'q-&%�(9ZN%@E1Y4�)+"C)�-p4�'q-&%�(9ZN%l4?<!@I%+Ff4�kq-&%7"C�!4�-l(*)Y(24=1�@Ek!�>4?)Y)�@�)3<!-p(9#!%&,9�!4�(9@E#g@$:�4�)+"C)�-!¹�6E-&"$1~"$#!B�(2#>B!�!4?)�1?6�¹�6E-7"C1B!�! 8 �(9-&4�K�Í·(*)3<!@$�>)p"w13"$#!B>@E �(9[&-�B^-�/I'q-&1?(2 8-&#W)7x�(9)t(24~B!(9Ô8%&�>,9)~)3@gkq-G%�-&1?)3"$(2#e)3<N"�)t)�<!-�-&4�)3(9 G"C)�-&B%&@E1?1�-�,\"C)�(2@E#!4m"$1�-G%7"$�!4�"$,�Kau�)l(94l"$,*DH"7604l'_@$4�4�(9k!,2-8)3<N"�)p)3<!-G-&4?)�(2 �"C)3-�4p1�-�ºN-&%�)7x5"C)p,9-7"$4�)l(2#^'N"$1?)&x�)3<!-'!1�-�4�-�#!%&-�@$:]%�(9)b6wD{(2B!-Cx�)�(2 8-mJC"$1?60(9#!X�'!1�@0B!�!%�)3(9J0(*)b6g4�<>@I%+Ff4~%&@E1?1�-&,2"C)3-�B�D{(9)3< úHKh��@SD5-�J$-&1&xzZN#!B!(9#!XE4(2#���"$k!,2-Y�h4?<!@SD¯)�<N"C)�)3<>-A-&4?)�(2 �"C)3-�4�@$:�)3<!-�4?'!(2,9,2@SJE-�1�"$1�-A1?@Ek!�!4�)�)3@8"pD{(2B!-YJC"$1?(2-�)b6�@$:�"$4?4��! 8'>)3(9@E#!4

Õ�æ�Ò�Û!ÔÂÎßÍ�Ò@Õ�Û)Ì�Ø�ÛÂÕ8âÂâ4Ø�Î÷ÔJÎÐÒñâ�ôªãzÒ�Ò�ãzÒ�ØqÔÂÎßÕ�Ï�¬pô �Oô

PSR

Page 21: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

@E#r)3-�%+<!#!@E,9@EX$6r"C#!BÃB!-& �"$#!BÃ4�<>@I%+Ff4&Krub#r)�<!-`#!-�/0)84�-�%�)�(2@E#�x�u~'!1�@SJ0(2B>-�:i�!1?)�<!-&1l-�JI(9B!-&#>%&-`)3<N"�)h m6-&4�)3(2 �"C)�-&4�"$1�-A#>@$)�%&@E 8'!,2-�)3-�,96�4�'!�!1?(2@E�>4&K

¥�%&%�@E1�B!(9#!X=)�@=)3<!-] �@E4�)�1?@Ek!�!4�)�-&4�)3(2 �"C)�-](2#t)+"$k!,9-H�lOi%&@E,9�! 8#GPSUWV�xW"$#l(9#!%&1?-7"$4?-H@$:.@E#!-]'_-�1�%&-�#W)+"$XE-'_@$(2#W)Y(9#�%&@E,9,2-&X$-t4?<N"$1�-l@$�>)34?(2B!-m)�<!-p(9#!B!�!4�)31?6M(24="$4�4?@I%�(\"C)�-&BgD{(9)�<a"G'!1?@IB!�>%�)3(*J0(9)b6w(2#!%�1�-7"C4�-l-&�f�N"C,�)3@U>K�Ø��K �z@r<!-�,2'£(9#f)�-&1?'!1�-�)�)3<!-M G"$X$#!(9)��!B!-M@C:A)3<!-�%�@I-�Ô�%�(2-�#f)&x�%�@E#!4?(2B!-�1G)3<N"�)�)3<!-g"SJ$-&1�"$XE-g6E-&"$1�,*6(2#!%�1�-&"$4�-�(2#8%&@E,9,2-&X$-�4�<N"$1?-=kq-�)bD5-&-�#gPSTERW��"$#!BwPSTETW�YD]"$4]"Ck_@E�I)HU>KÏ�A'_-�1�%&-�#W)+"$XE-�'_@$(2#W)34�K�¥=%�%&@E1?B!(2#!X�)3@ m6�-�4?)�(2 �"C)3-CxN"$#�(2#!%�1�-&"$4�-A(9#`%&@E,9,2-&X$-Y4�<N"C1�-�@$:�U>KÏ�l'q-&1?%&-�#f)3"$XE-�'q@E(2#W)34HD5@E�!,9B`k_-~"$4?4�@0%&(2"C)3-�B�D{(*)3<�"$#(2#!%�1�-&"$4�-l(9#M@E�>)�'!�>)AkW6g"$k_@$�>)AU>K*P����K��N@E1{)3<!-h"7J$-&13"CXE-p'!,2"$#W)Y(2#w)3<!-lÈ~K ¸qK9x;)�<!(24Y"$ �@$�!#W)34�)�@�"$kq@E�>)� PSU>x�UEUEUl'q-&1H6$-7"$1�K5uvB!(24?%&�!4?4�)�<!-� G"CXE#!(9)��!B!-Y@C:�)3<>-~-�4?)�(2 �"C)3-�B`-�o_-&%�)�(2#w¸I-�%�)�(2@E#|Ø>K�ê8^� �ÇP9A[?��rU�A!OQ>@K�Aª©«¨ê_�?B<�£�>5G��´>5¦.<^H+>5G�� >�H�H+A!Or>@?�� A[G�G��u�#!@SDÝ)3�>1�#w)�@�)�<!-t:i@E�>1�4?'_-�%&(*ZN%7"C)�(2@E#w%+<!-&%+Ff4AB!-�4�%�1�(2kq-&Bw(2#w4�-&%�)3(9@E#g�>K��>K���(21�4�)7x.uH-�4?)3(9 G"�)3-�-&�f�N"C)�(2@E#×G4?�!k!4?)�(9)��>)3(9#!XG<f�! �"$#|%7"$'!(*)+"$,�D{(*)3<w"� 8-7"$4?�!1�-~@$:�@SJE-�13"$,9,�»N¼0½�¾�¿�À�Á$ÂI%7"$'!(*)+"$,�@$�>)34?(2B!-t"�'!,2"$#W)7KHu�:� m6-&4�)3(2 �"C)�-&4{"$1?-~4?'!�!1?(2@E�!4�xN@E1�(9:�)�<!-�6`%&"$#|k_-A-}/>'>,\"$(9#!-&B�kW6|"$XEXE,9@E 8-&13"�)3(2@$#G-�o_-&%�)34{@$)�<!-&1�)3<!"$#�<0�> G"$#%7"$'>(9)+"C,>-�/0)�-&1�#!"$,2(*)3(2-�4&x$)�<!-&#hu� �"S6~ZN#!B8"Y'q@E4�(*)3(*JE-H%�@E1�1?-&,\"�)3(2@$#mkq-�)bD5-&-&#�'!1�@0B!�!%�)3(*JI(*)b6p"C#!Bp)3<!-�@SJ$-&13"C,2,B!-&#>4�(9)b6h@C:�'!<W604�(9%7"$,.%7"C'!(9)3"$,!(2#�"�%&(9)b6$K��Y#8)�<!-{%&@E#W)�13"$1�6Ex0(9:_ m6l-&4�)3(9 G"C)�-&4v"$1?-�%&"$'>)��!1�(9#!Xt@$#!,96m<0�> G"$#%7"$'>(9)+"C,z-}/0)3-&1?#N"$,9(9)3(9-&4�x!)3<!-�1�-m(94�#>@G1�-&"$4�@$#wD{<W6M'><f604?(2%7"C,�%&"$'!(9)3"$,�(2#|@E#!-t'!,\"C#f)�4?<!@E�!,9BMkq-t%�@E1�1?-&,\"�)3-&BD{(9)�<w'!1?@IB>�!%�)�(9J0(9)b6G(2#�@$)3<>-&1�'!,2"$#W)34&K

�N@E1=-7"$%+<e'!,\"C#f)A"$#!Ba%&(*)b6Ex�u=�>4�-l)bD]@|"$,*)3-�1�#N"C)�(9J$-p �-&"$4��>1�-&4�@$:5B!-�#!4�(*)b6�@$:v'!<W604�(2%&"$,�%7"C'!(9)3"$,�Ó�)3<!-,2@EX�@$:v"7JE-�13"$XE-m'!<W6I4?(2%&"$,�%&"$'!(9)3"$,z@E�>)34?(2B!-~)3<!-t'!,\"C#f)=(2#M)�<!-m%�(9)b6M"$#!BM)�<!-m,9@EXG@C:�'_-�1�D5@E1�FC-&1�"7JE-�13"$XE-'!<W604�(2%&"$,�%&"$'!(9)3"$,;@$�>)34?(2B!-=)�<!-A'!,2"$#W)H(2#�)�<!-Y%�(9)b6EKv¡]1?@E4�4Q�b4?-&%�)�(2@E#!"$,�-&4�)3(9 G"C)�-&4H(9#���"$k!,2-=×l4��!XEX$-&4?)�)�<N"C)"7JE-&1�"$XE-5%7"$'!(*)+"$,W(94�%&@E1?1�-&,2"C)3-�B~D{(*)3<~'!1�@0B!�!%�)3(*JI(*)b6ExC"$,9)�<!@E�!X$<~)�<!-54?(2XE#~(24�'q@E4�(*)3(*JE-�(2#8PSTERW��"$#>Bm#!-�XW"C)3(*JE-(2#ÃPSTETE�IK8��@SD]-�JE-�1&x�D{<>-&#^'>,\"$#W)AZ>/I-&B�-�o_-&%�)34t"$1�-h(2#>%&,2�>B!-&B�)3<>-�%�@I-�Ô�%�(2-�#f)~kq-&%�@E �-�4�(2#!4?(2XE#!(*ZN%7"C#f)&x4��!X$XE-&4�)3(2#>Xp)3<N"C)H'!,\"$#W)��b,2-�JE-�,;<!-�)3-&1?@EXE-�#!-&(*)b6� �"S6�k!(2"$4H%&1?@E4�4Q�b4?-&%�)�(2@E#!"$,�-&4�)3(9 G"C)�-&4�K�Í·<!-&#�4�)+"C)�-!¹�6E-7"C1-�o_-&%�)34h"$1?-`"$B!B!-�BÐO %�@E,2�! 8#s×fV�@E1m(9#!B!�!4�)31�6�¹�6E-&"$1h-�o_-&%�)34h"$1?-`"$B!B!-�BÐO %�@E,2�! 8#rÎ$V�x�)3<>-�%&@0-�Ô8%&(9-&#W)34B!1�@$'a)�@�J0(21?)��N"$,9,96�[&-�1�@!Ktu�%�@E#!%�,2�!B!-p)�<N"C)A@SJ$-&13"C,2,�,9-�J$-&,�@$:v'!<W604�(9%7"$,�%&"$'!(*)+"$,z@E�>)�4�(2B>-p)3<!-l'!,2"$#W)AB!@0-&4#!@$)�<N"7JE-t"$#�-�o_-&%�)=@$#|'>,\"$#W)34�¨N'!1�@0B!�!%�)3(*JI(*)b6�4?(2 8(2,\"C1v)�@h)�<!-�@E#!-�XE-�#!-&1�"C)3-�BMkW6`<f�! �"$#w%&"$'!(*)+"$,yK

�ê8y7 �ÇP X¬F.R >5J �´>5¦.<^HB>5G�¤�¦.<�G�G�P]U�A[OQ?!�ÇA!£!G�<�JLA�"D<^HQ¨#�¶£�P�JLP�R�<�£$�%<�?�HB>5JL£�A%�u�#!@SD¶)3-�4?)H)�<!-=<W60'_@C)3<!-�4�(24v)3<N"�)H4�'>(2,2,9@SJE-&1?4vD{(*)3<!(9#G"t%&(9)b6hkq-�)bD5-&-�#�(2#!B!�>4?)31?(2-�4v)�<N"C)�"C1�-�-&%&@$#!@E 8(2%7"C,2,96%&,9@E4�-a"$1?-g,\"C1�XE-�1�)3<!"$#¶4�'!(9,2,9@�J$-&1?4�k_-�)bD]-�-&#Ð(2#!B>�!4?)�1�(2-�4�)3<N"�)�"$1�-M-&%&@$#!@E 8(2%7"C,2,96ÃB>(24?)3"$#W)7Kdu8 �@0B!(9:§6

PST

Page 22: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

-&�f�N"C)�(2@E#8×A)3@�(2#>%&,2�>B!-{%&@E,9,2-&X$-H4�<N"C1�-{(2#h �"$#f�>: "$%�)��!1�(9#!X!xf"$4�D5-&,9,N"$4�%&@E,9,2-�XE-�4�<N"C1�-{(2#h�z13"$#!4?'_@$1?)+"�)3(2@$#�Õ¡]@E 8 p�!#!(9%7"C)�(2@E#G"$#!B`È{)3(2,9(9)�(2-&4�Õf��1�"$B!-hOi1�-�)3"$(2,q"$#>B�D{<!@E,2-�43"$,9-SV}ÕN¸I-�1?J0(2%�-&4&Õ!��(2#N"C#!%&-Cx!�{-7"$,;��4�)+"C)�-A"$#!Bub#!4��>13"$#!%�-$Õ;Lw(2#>(2#!X!Õ>"$#!BM¡]@E#!4�)31��>%�)3(9@E#�Ó

,9#�ìba�c�d"{"e_ï'&�(±q ( ú ( dfe+u=� � cq,2# ñ P a�c�dfe � � c;,9# ñ ��a�c�dfevu=�pcq,2#{õ&a�c�d�evu=¯°aou=¯�c�eBux¯p{"eBuxw�d�eBu=wya�c�dfe O�ÎEV

D{<!-&1?- ú ( d�e�(94G#!@SD�%&@E,9,2-�XE-g4�<!"$1�-�(9#£(2#!B>�!4?)�1?6r$qx�%�(9)b6DlM"$#!B¶6$-7"$1mn}Õ�"$#>B $¤(9#!B!-}/>-�4�"$,2,tP��bB>(2XE(*)(2#!B>�!4?)�1�(2-�4pO§Í·<!-&#¥$�ï*),+�-/._ù/+pl#n�. �10 -32qx.uH%7"$,9%&�!,2"C)3-A%�@E,2,9-&XE-A4?<N"$1?-m-�/I%�,2�!B!(9#!X����bB!(9XE(9)H(2#!B!�>4?)31�6�j0V�K���0�!"C)3(9@E#gÎm60(2-�,2B!4�-�4?)�(2 �"C)3-�4�@$:�4?-�JE-�#$4qz¨´4Qí·@$#!-A:i@E1�-7"$%+<�P��bB>(2XE(*)H(2#>B!�!4?)�1?6$K

��"7JI(9#!Xa@Ek>)3"$(2#!-�BÆ-�4?)�(2 �"C)3-�48@C:�)�<!- qz¨´4&x5ut)3<>-&#Æ)�-&4�)�D{<!-�)3<!-�18)�<!-| G"$X$#!(9)��!B!-`@$:�-7"$%+<Æ(2#!B>�!4��)31�6_¨´4�q�%&@0-�Ô8%&(9-&#W)HB!-�'_-�#!B!45@E#8)�<!-=-�%&@E#>@E �(9%�B!(24�)+"$#>%&-�k_-�)bD]-�-&#�)3<!"C)v(2#!B!�>4?)31�68"$#!B� G"$#f�>: "C%�)3�>1�(2#>X!K¥=4G"$#W)3(2%�(2'N"�)3-&B�(2#£¸I-&%�)3(9@E#£�>K��>xHum�!4�-w(2#!'!�I)?�b@$�>)3'!�I)�)3"$k!,2-�48)�@^ 8-7"$4?�!1�-|-&%�@E#!@E 8(2%�B!(94?)3"$#!%&-CK � ÂÑu13"$#>Fw#!@$#I�b �"$#f�>: "$%�)3�!1?(2#!X�(2#!B!�>4?)31?(2-�4YkW6MB!(94?)3"$#!%&-t:i1�@E �"$#f�>: "$%�)��!1�(9#!X�kN"C4�-&B�@$#g)3<!-mJC"$,9�!-m@C:�)3<!-(2#!'>�>)34G)�<N"C)G-7"$%+<·(2#>B!�!4?)�1?6Æ'!1�@SJ0(2B>-&4G)�@s G"C#0�I: "$%�)��!1�(9#!X!K¯¥�%&%�@E1�B!(9#!X^)�@s m6ÆB!-�ZN#>(9)3(9@E#�x�kq-&%&"$�!4�- G"C#0�I: "$%�)��!1�(9#!Xt�>4�-&45 �@$1�-�(2#!'!�I)34�:i1�@E êÅ$)�13"$#>4�'q@E1?)3"C)3(9@E#�xW%&@$ � p�>#!(2%&"C)3(9@E#h"$#!B��>)3(9,2(9)�(2-�4�ÅY)3<!"$#�:i1?@E ÅE%&@$#!4?)�1��!%�)3(2@$#!Å!xN �"$#f�>: "$%�)��!1�(9#!Xl(24�%�,2@E4?-&1�)3@wO "$#!B�(2#W)3-�13"$%�)34{ 8@E1�-YD{(*)3<.V]Å$)�13"$#>4�'q@E1?)3"C)3(9@E#�x>%�@E 8 p�I�#!(2%&"C)3(9@E#�"$#!B|�>)�(2,2(*)3(9-&4�Åt)3<N"$#�ÅE%�@E#!4�)31��>%�)3(9@E#!Å!K

��"$k!,9-`Îw4?<!@SD{4l-&4�)3(2 �"C)�-&4m@C:�)3<!-·q�%�@I-�Ô�%�(2-�#f)�4p(2#^-&�f�N"C)�(2@E#ÃÎ0Kg��<!-�%�@I-�Ô�%�(2-�#f)p(24m,2"$1�X$-&4?)t:i@E1LM"$#f�>: "$%�)3�!1?(2#!X~"$#>Bl4� �"$,2,9-&4?)�:i@E1���(9#N"$#!%�-$xW�{-7"C,!��4?)3"C)3-{"$#>B8ub#>4��!1�"$#!%&-CKv¡]@E,2�> �#h�=4?<!@SD{4�-&%&@$#!@E 8(2%B!(24�)+"$#>%&-$xI"$45 �-&"$4��!1?-&B�kf6h)�<!-Y"$ 8@E�!#W)v@$:;(2#!'!�I)34v(2#G �"$#f�>: "$%�)3�!1?(2#!XA:i1?@E ê-7"$%+<G(2#!B!�>4?)31�6EK�¥�,9)3<>@E�!XE<)3<!-{1?-&,\"�)3(2@$#!4�<!(9'pkq-�)bD5-&-&#�)3<!-�%�@I-�Ô�%�(2-�#f)v(9#8%�@E,2�> �#`P�"$#!Bh-�%&@E#!@$ �(9%HB!(24�)+"$#>%&-{(2#l%�@E,2�! 8#8�Y(24�kW6l#!@ �-&"$#!4� 8@E#!@$)�@E#!(9%$xI)�<!-A-&4�)3(9 G"C)�-&B`%�@I-�Ô�%�(2-�#f)�4{B!@l)3-&#>B�)�@hB!-&%�1�-7"C4�-~"$4�D]-A 8@SJE-A)3@SD]"$1�B�(9#!B!�!4�)31�(9-&4)3<N"�)H'!1?@�J0(9B!-=:i-�D5-&1](2#!'!�I)34](9#W)3@p �"$#f�>: "$%�)3�!1?(2#!X!K���<!(24]%7"$#�kq-Ykq-�)?)3-&154�-�-&#�(2#G��(2XE�>1�-=�IxID{<!(9%+<`'!,2@C)34)3<!-�%&@0-�Ô8%�(2-&#W)�4H"$XW"C(2#!4�)v)�<!-�13"$#!Flk!"$4�-�BG@E#8J$"C,2�!-{@$:;(2#!'!�I)34&K���<!-A�Acz¸lZ>)�)3-�B�,2(9#!-�(24�4?�!'_-�1�(9 �'q@E4�-�B�K��<!-h�Acz¸w4�,9@E'q-`O 4�)+"$#>BN"$1�BM-&1�1?@E1+V{(24��+K*PSUETMO�K�U$×f�EV}x;"$#>B65Y�A(24�U>KÏÎC×!K�¥ø4�(9 �(9,\"$1HZ!XE�!1�-t(24�@Ek>)+"C(2#!-�BM(9:@E#!-�'!,9@$)34H)�<!-�%&@0-�Ô8%&(9-&#W)34�"$XW"$(9#!4?)])3<!-�,2@$XhJC"$,9�!-A@$:�(2#!'>�>)34�K

��(2XE�!1?-Y��(2#!B>(2%7"�)3-&4v)3<N"�)H<f�! �"$#G%&"$'!(9)3"$,q(2#G(9#!B!�!4�)31?(2-&4v)3<N"�)�"$1?-=-&%�@E#!@E 8(2%&"$,2,*6p%�,2@E4?-�)3@m G"$#f�>: "C%��)3�!1?(2#!X`Oy"$#!B`'>1�-&4?�! �"$k!,96�(2#W)�-&13"C%�)� 8@E1�-�D{(9)�<� G"C#0�I: "$%�)��!1�(9#!XfVvkq-&#>-�Z!)� �"$#f�>: "$%�)3�!1?(2#!Xm'!,\"$#W)�4H �@$1�-)3<N"C#�<0�> G"$#M%7"$'!(*)+"$,z(2#M(2#!B!�>4?)31?(2-�4=)3<N"�)A"$1?-p-&%�@E#!@E 8(2%&"$,2,*6�: "$1�:i1?@E G"C#0�I: "$%�)��!1�(9#!X�O "$#!B�'!1?-&4��> h�

®�à õ4àOÒÈË¢ÿ87 ÔJÌ�ÓOáßÒ�â ÌAÛJÒÈÓHÌ�âÂÒ�Ñ Õ�Ï ÏHÌ�ÔJÎÐÕ�ÏHÌAá�ÑHÌ�ÔJÌHô Ë éHâÂÒ-ÔJàOÒMú�ò�â»Òñú õ­ÌAÓHáÐÒ�Ý�ö;àOÎßØÚàâÂàOÕ�ö)â ÔÂàOÒÈÎßÏpÿïOéOÔJâ ÔJÕÇÎÐÏHÑOéHâÆÔJÛÂä-ïOÛJÕzÑOéHØsÔJÎÐÕ�ÏÈÌ�ÏHÑ-ÔÂàOÒ=Ø�Õ�Í�Í�ÕpÑpÎ÷ÔJÎÐÒñâ3ÔÂà`Ì�Ô ÌAÛJÒ�ØqÕ�ÏHâ»éHͯÒñÑ Ózä øHÏHÌAá�éHâ»Ò�ÛJâ�ô õ4àOÒ=ò�â»Ò�ÔÚÌ�ÿÓOáßÒ�Îßâ�ÔJàOÒ�Í�Õ�â»Ô�ó}ÛJÒ��8éOÒ�Ï�ÔJáÐä ÛJÒ��8éOÒñâÆÔJÒ�Ñ ÔJÌ�ÓOáÐÒWÓRÒ�Ø�Ì�éHâÂÒ�Õ�ó�ÎÐÔJâ9ÌAïHïOáÐÎÅØ�ÌAÔÂÎßÕ�ÏHâ�ÔJÕ.ÔJàOÒ�Ò�â»ÔÂÎßÍ�ÌAÔÂÒñâ�Õ�ó ª Ö ë®ô�ãzÕ�éHÛJØ�Ò�ù9:9;9=< >�?A@B< CED�FHGI>�?A@HGKJMLONQP�R�SUT�VWG�JUD�SX@Y>[Z\?�RKG � TKDKNEGKSX@Y>[Z]?A^_JXR`S[< �`aBbdc @eLOD�L �|°��f�Hô�$U

Page 23: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

"$k!,*6g(2#W)�-&13"C%�)�,2-�4�4YD{(*)3<a G"C#0�I: "$%�)��!1�(9#!XfV�Kt��<!(24YZ!#!B!(2#>X|(94AkN"$4?-&Be@E#ÃP��bB!(9XE(9)�(2#>B!�!4?)�1�(9-&4&x�D{<>(2%+<�"$1�-JE-�1?6ek!1�@E"$B�KG�z@g"C4�4�-�4�4t<!@SDê1�@Ek>�!4?)~)3<!(94�1�-&4?�!,9)t(24�x�uY1�-�'_-&"C)�)3<!-�"$#N"$,*604�(24��!4?(2#!Xw"� �@E1?-hB!(24�"$XEXE1?-��XW"C)�-&B�(2#>B!�!4?)�1?6wB!-�Z!#!(9)�(2@E#�K�ub#!4�)3-7"CBe@C:�,2@0@EFf(2#!X�"C)pP��bB!(9XE(9)�(2#>B!�!4?)�1�(9-&4&x_u�,2@0@EF�"C)~�8B!(2XE(*)�(2#!B!�>4?)31?(2-�4&K��JE-&1�6f)3<!(9#!Xh-&,24?-=1?-& �"$(2#!4v)3<!-=43"$ 8-$K�¥�4Hkq-�:i@E1?-$x>u�1�"$#!F8(2#!B>�!4?)�1�(2-�4]kN"C4�-&B�@E#�J$"C,2�!-�@$:�(2#!'>�>)34�K���"Ck!,2-Øg4�<!@SD{4l-�4?)3(9 G"�)3-&4t@$:�"M 8@IB>-&,�D{<!-&1?-�)3<!-�%&@0-�Ô8%&(9-&#W)h@E#s%�@E,2,9-&XE-84�<N"C1�-GJC"$1?(2-&4mB!-&'q-&#!B>(2#!Xg@$#s)3<!-B!(24�)+"$#>%&-�k_-�)bD]-�-&#|����B!(2XE(*)�(2#>B!�!4?)�1�(9-&4&K��5-&%7"C�!4�-�)3<!-�1�-�"$1�-�4�@t G"$#W6�����B!(2X$(9)�(9#!B!�!4�)31�(9-&4�xIu�X$1�@E�!'h)3<>-& (2#e4�-�)34~@$:]Z!J$-$K�ub#^@$)�<!-&1AD5@E1�B!4�x�u�:i@E1�%�-8)�<!-h%&@0-�Ô8%&(9-&#W)m@$#�%�@E,2,9-&XE-l4?<N"$1�-h)3@|kq-h)�<!-843"$ 8-l:i@E1A)3<!-%&,9@E4�-�4?)8Îw(9#!B!�!4�)31?(2-&4�x�)3<>-�#!-�/0)pZ>JE-`"$#>Br4�@g@E#;Kð��@$)�-�)�<N"C)m)�<!-�(9#!B!�!4�)31?6e%�@E �'q@E4?(9)3(9@E#e(2#s-&"$%+<�Î��(2#!B>�!4?)�1?6hXE1?@E�!'h(24�B!(*o;-�1�-�#f)�:i@E1�-&"$%+<�'>,\"$#W)7K´� � �N@E1�-�/>"$ 8'!,2-CxW)3<!-{-&#W)�1?6h(2#h1?@�D¯P{(24�)3<!-{%�@I-�Ô�%�(2-�#f)v@E#%&@E,9,2-�XE-Y4�<!"$1�-�(2#�)�<!-tÎh���bB!(9XE(9)5(2#>B!�!4?)�1�(9-&4H)3<!"C)�"$1�-�%�,2@E4?-&4?)�)�@l)3<!-�1�-�,2-�J$"C#f){'>,\"$#W)7K�c�(9F$-A:i@E1H��"$k!,9-~ÎIx-&4�)3(2 �"C)�-&4�(2#h��"$k!,2-{Ø�4�<>@�D¶"A)�-&#!B>-&#!%�68)�@tB>-&%&1?-7"$4?-="C4�D5-� �@SJE-{:i1�@$ ø%&,9@E4�-{(9#!B!�!4�)31�(9-&4�)3@�(9#!B!�!4�)31�(9-&4:i�!1?)�<!-&1{"7D]"76EK���<!(24](24H 8@E1�-�-7"$4?(2,*6�4?-&-�#|(9#���(2X$�!1�-=�>xI)�<N"C)�'!,9@$)34v)3<!-A-�4?)�(2 �"C)3-�B�%&@0-�Ô8%&(9-&#W)34{"CXW"$(2#>4?))3<!-t13"$#>F|k!"$4�-�B�@E#wJC"$,9�!-t@C:�(2#!'>�>)34�K���<!-l��cz¸`Z!)�)�-&Bg,9(2#!-�(24�4��!'q-&1?(2 8'_@$4�-&B;K���<>-p4�,9@E'_-GO 4�)+"$#>BN"$1�B-&1?1�@E13V�@C:�)�<!-�,2(2#>-Y(24]�bU>KÏUIP�Î`OyU>K�UEUW�$V�K

�=J$-&13"C,2,�xE:i1?@E ê��(9XE�!1?-&45�~"C#!BG�Ix0u�%&@E#!%�,2�!B>-�)�<N"C)7xWD{(*)3<!(9#�"�%&(*)b6Exf4�'>(2,2,9@SJE-&1?4�B!-&%&"S6hD{(*)3<8-&%&@$#!@E 8(2%B!(24�)+"$#>%&-$xvD{<!-&#¤B!(24�)+"$#!%�-�(24h �-&"$4��>1�-&B�kW6rJC"$,2�!-�@$:�(2#>'!�>)34�KÆu�:�JC"$,2�!-�@$:�(2#>'!�>)34h(94�"�JC"$,2(9Br'!1�@7/06:i@E1�<!@SDÒ p�>%+<w(9#!B!�!4�)31�(9-&4{(2#W)�-&13"C%�)�D{(9)�<�-7"$%+<w@$)3<!-�1&xN1?-&4��>,9)34{(9#�)�<!(24�4?-&%�)3(2@$#w4?�!'!'q@E1?){)3<>-�J0(9-�D¯)�<N"C)4�'!(9,2,9@�J$-&1{"$1?-�1�-&,2"C)3-�B`)3@l)3<!-~"$ 8@E�!#W){@$:�(2#W)�-&13"C%�)3(9@E#!4�kq-�)bD5-&-�#MD]@$1�F$-�1�4�(2#�B!(*o;-�1�-&#W)�(2#>B!�!4?)�1�(9-&4&K

�ê8Xg �rOQA|X¬F.R >5Jh�Á>5¦.<^H+>5G�¤�¦.<�G�G�P[UVA!OQ?i� P�OQA| pR ¦ÔP�OBHB>5JVHíM�P\Okj�l¬JLPm"DG�A!W.K\A/� pJVHBA[JL?+<IUVA:j ©ìOQP�W�FL£zH+<�PVJL?n�

u�#!@SDÐ)��!1�#�)3@m)�<!-Y<W60'_@$)�<!-&4?(24])�<N"C)]<0�> G"$#G%7"$'!(*)+"$,q4�'>(2,2,9@SJE-&1?4]"C1�-Y 8@E1�-�(2 8'q@E1?)3"$#W)5:i@E1v'!1?@IB!�>%�)3(9@E#!4)3<N"�)�"$1�-MÅEFf#!@SD{,2-&B>XE-�(2#W)3-�#!4�(*JE-�Å!Kéuh�!4?-�)bD]@Ã"$,*)3-�1�#N"C)�(9J$-gB!-�Z!#!(9)�(2@E#!4�@$:~ÅEFf#!@SD{,2-�B!XE-�(2#W)�-&#!4?(9)b60Å!K��(21?4?)&xIu�%�,\"$4?4�(9:§6h'>1�@0B!�!%�)�(2@E#>4]"$45<!(*��)3-�%+<�@E1v,2@SD¶)3-�%+<�K�¥=4�"C1�XE�!-�B�(2#G¸I-�%�)3(9@E#`�>K��>x0u�-�/I'q-&%�)])3<!-�-�o_-&%�)@$:q<f�! G"C#l%7"$'!(*)+"$,I4�'!(9,2,9@�J$-&1?4�)3@Akq-�,\"$1?XE-&1z:i@E1�<!(���)�-&%+<l'!1?@IB!�>%�)3(9@E#!4�K�uz�!4�-H)�<!-�B!-�Z!#!(9)�(2@E#p@C:_<>(2XE<0nW)3-&%+<(2#!B>�!4?)�1�(2-�4t'>1�@SJ0(2B!-�BskW6�)3<!-�¥= 8-&1�(9%7"$#���,2-�%�)31?@E#!(9%8¥�4�4?@I%�(\"C)�(2@E#¤O�PST$TWÙEVµkN"$4?-&B�@E#^×fÎ�×�n0B!(9XE(9)�¸Iu�¡%&@0B!-&4�K��b�G¥=%&%�@E1�B>(2#!Xh)3@l)3<>(24�B!-�ZN#!(9)�(2@E#;xN"$kq@E�>)�T�²@$:�)�<!-�'!,\"$#W)�4�(2#`)3<!-�4�"$ �'>,2-�"$1?-A<!(*��)3-&%+<;K

®b© þHÕ�ÛeÒ�ìOÌAÍ�ïOáßÒ�Ý�ÔÂàOÒ�¬FÎÐÏ`ÑpéHâ»ÔÂÛJÎÐÒñâªÔJàHÌ�Ô4ÌAÛJÒ¾ØqáßÕ�âÂÒ�â»ÔªÔÂÕ�ïOáßÌ�Ï8ÔJâZÎÐϽÎßÏHÑpé`âÆÔJÛÂä%o¯ÌAÛJÒ¾ÑpÎ��RÒ�ÛÂÒ�Ï�ÔZó}ÛÂÕ�Í ÔJàOÒ�¬@ÎÐÏHÑOéHâÆÔJÛÂÎßÒ�âeÔÂà`Ì�ÔÌ�ÛÂÒ@ØqáßÕ�âÂÒ�â»Ô4ÔÂÕ�ïOáÅÌAÏ8ÔJâ4ÎßÏ�ÎÐÏ`ÑpéHâ»ÔÂÛJä�-�ô®�® õ4àOÒ¯ÑpÒqø`ÏOÎ÷ÔJÎÐÕ�Ï�ÎßÏHØqáßéHÑpÒñâ�Ø�Õ�Í�ïOépÔJÒ�ÛÚâ¾ÌAÏ`Ñ°ÕI�½ØqÒ�Ò��8éOÎßïOÍ�Ò�Ï8Ô�ÝwØqÕ�ÏHâÂéOÍ�Ò�Û¾Ò�áÐÒñØsÔJÛÂÕ�ÏOÎßØ�â�Ý�ØqÕ�Í�Í�éOÏOÎÅØ�ÌAÔÂÎßÕ�Ï°Ò0��éHÎÐïOÍ�Ò�Ï�ÔñÝÒ�áÐÒñØsÔÂÛJÕ�ÏHÎßØ�ØqÕ�Í�ïRÕ�ÏOÒ�Ï8ÔJâ�Ý�âÂÒ�Í�ÎßØ�Õ�ÏHÑOéHØsÔJÕ�ÛÚâ�Ý;ÎßÏHÑpéHâ»ÔÂÛJÎÅÌAá Ò�áßÒ�ØsÔJÛÂÕ�ÏOÎÅØ�â�Ý)ïOàOÕ�ÔÂÕ�ÏHÎßØ�â�Ý ÑpÒqó}Ò�ÏHâ»Ò�Ò�áßÒ�ØqÔÂÛJÕ�ÏOÎÅØ�â�Ý)Ò�áßÒ�ØqÔÂÛJÕ�Í�Ò�ÑOÎßØ�ÌAáÒ0��éHÎÐïOÍ�Ò�Ï�ÔñÝHâÂÕAó�ÔÆö4ÌAÛJÒ Ì�ÏHÑ�ØqÕ�Í�ïOéOÔÂÒ�Û;ÛJÒ�áÅÌ�ÔJÒ�Ñuâ»Ò�ÛÂæzÎÅØqÒñâ�Ý8ÔÂÒ�áÐÒñØqÕ�ͯÍ'éOÏOÎÅØ�ÌAÔÂÎßÕ�Ï�â»Ò�ÛÂæzÎÅØqÒ�â�ô

�IP

Page 24: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��<>-�-&4�)3(2 �"C)�-&4m(9#^%�@E,2�! 8#¤PG@$:{��"Ck!,2-�Ùw4��!X$XE-&4�)p)3<N"�)p 8@E4?)t@$:�)3<>-�-�o_-&%�)l@$:�%�@E,2,9-&XE-84�<N"C1�-�@E#'!1�@0B!�!%�)3(*JI(*)b6m%�@E 8-&4�:i1?@E é<>(*��)�-&%+<p'>,\"$#W)34�K���<!-�%�@I-�Ô8%&(2-�#W)�@E#l%&@E,9,2-�XE-54?<N"$1?-H:i@E1�#!@$#l<!(*��)3-&%+<l'>,\"$#W)34�(24U>KÏ�E�$R>xI"$#!B`#!@C)H4�(9XE#!(*ZN%7"$#W)�,968B!(9o_-&1?-&#W)]:i1?@E ÇU>K���<!-Y%�@I-�Ô8%&(2-�#W)�@E#�)3<>-Y(2#W)3-�13"$%�)3(9@E#G@E#G%&@E,9,2-&X$-�4?<N"$1�-"$#!BÃ"M<>(2XE<I��)3-�%+<rB!�! 8 m6e(24p"C,2 8@E4?)~)3-�#s)3(2 8-&4t,\"$1?XE-&1�x��IK*PSRET>x�"$#!Bs4?(2XE#!(*ZN%7"C#f)�,96eB!(*o;-�1�-&#W)p:i1?@E U>Kub#!%&,9�!B!(9#!X�(9#!B!�!4�)31�6�¹�6E-&"$1z-�o_-&%�)�4�<N"C4z,9(9)?)3,2-�(2 8'N"$%�)&xSD{<!(2,9-�(2#!%�,2�!B!(9#!X�4?)3"C)3->¹�6$-7"$1�-�o_-&%�)34z4�(2X$#!(9ZN%&"$#W)3,*61�-�B!�!%&-�4t)�<!-l%&@0-�Ô8%&(9-&#W)~@E#a)3<!-l(9#f)�-&1�"$%�)�(2@E#�)3-�1� |Kpub#e%&@E,9�! �#�×>x�D{<!-&1?-�(9#!B!�!4�)31?6�¹�4?)3"C)3->¹�6$-7"$1m"$1�-(2#!%�,2�!B>-&B�x�)3<>-8%�@I-�Ô8%&(2-�#W)t@$#a)�<!-h(2#W)3-�13"$%�)3(9@E#a(24lPEK�ØER>x�D{<!(9,2-p)�<!-h%&@0-�Ô8%&(9-&#W)�:i@E1�"$,2,�@$)3<>-&1�'!,\"C#f)�4�(24U>KÏÎEÙIK�¥�%&%&@$1�B!(9#!Xp)3@~)3<!(94],\"C4?)H4?'_-�%&(*ZN%7"C)�(2@E#;x0)�<!-Y-�o_-&%�)�@$:�%�@E,2,9-&XE-�4�<N"C1�-Y@E#�)3<!-Y'>1�@0B!�!%�)�(9J0(9)b68@$:�<>(2XE<)3-�%+<�'>,\"$#W)34t(24p�IK �$ÎsOyU>K�UWÎEÙ®ulP$KÏØEREV�x�D{<!(2%+<r(94t)3<>1�-&-�)3(2 8-&4~,\"C1�XE-�1t)3<!"$#^)3<>-�%&@E1?1�-�4�'q@E#!B!(9#!X�"7JE-�13"$XE--�o_-&%�)=(9#|��"$k!,9-��>x!%�@E,2�! 8#wÎIK

ub#e)3<!-8,\"C4?)t%&@E,9�! �#a@$:])+"$k!,9-�ÙIx�uY(9#!%&,9�!B!-h%&(*)b6�¹�6$-7"$1p-�o;-�%�)�4&K���<!(24~ 8@IB!-�,�(24�)3<!-8 8@E4?)t1�@Ek>�!4?)@E#!-CxEk_-�%7"$�>4�-�Á$§Â7%�(9)b6AD{(9B!-$x$)�(2 8-���J$"C1?60(2#!X�: "$%�)3@E1?4z)�<N"C)� G"76�(2#W)�1�@0B!�!%&-v4�'>�!1�(9@E�!4�%�@E1�1?-&,2"C)3(9@E#tkq-�)bD5-&-�#'!1�@0B!�!%�)3(*JI(*)b6�"$#!B`%&@$,2,2-�XE-�4�<N"$1?-�"$1�-�%&@E#W)�1�@E,9,2-&B�:i@E1&K��5-&%7"C�!4�-Au�(2#>%&,2�>B!-="pB>�! � t68:i@$1]-7"C%+<`%&(9)b6G"$#!B6E-&"$1p'N"$(91&x�u~%&"$#!#!@C)p(2B>-&#W)3(*:§6e)�<!-G,9-�J$-&,]@C:�)3<!-�4�'!(9,2,2@SJ$-&1&x�k!�>)l@$#!,96a)3<>-ð¾$¿ pL¹�¼ ¹�Ë;À#¹�(2#e)3<!-G4�'!(9,2,2@SJ$-&1k_-�)bD]-�-&#r<!(v"$#>B�,9@�Dé)3-�%+<s'!,\"C#f)�4&K´�b³·��<!-G%�@I-�Ô�%�(2-�#f)t@E#a)3<!-8(2#W)�-&13"C%�)3(9@E#e%&@E,9,2-&X$-l4�<N"$1?-!¹�<!(�)3-&%+<^(24PEK*PEK���<!(94�4��!X$XE-&4�)34�)3<N"�)�)3<!-�%�@I-�Ô8%&(2-�#W)�(2#l%&@$,2�! 8#p×A(24��!'WDH"$1?Bhk!(\"$4?-&Bhkq-&%7"C�!4�-{@$:q%&(*)b6W��)3(9 �-v4�'q-&%�(9ZN%<!-�)�-&1?@EXE-&#>-&(9)b6$K���@SD5-�JE-�1&x�-�JE-&#Ã"�:§)3-&1�%�@E#W)31�@$,2,2(9#!X`:i@E1�%&(*)b6�¹�6E-&"$1m-�o;-�%�)�4&x�<f�! �"$#^%&"$'!(*)+"$,�4?'!(2,9,2@SJE-�1�41�-� G"$(9#�4�(2X$#!(9ZN%&"$#W)3,*6G,2"$1�XE-�1]:i@E1�<!(9XE<`)3-�%+<wZN1? �4H)�<N"$#�:i@E1{"$,2,_@$)3<>-&1�ZN1� 84&K

¥�4�"$#Ð"$,9)�-&1?#N"C)3(*JE-wB!-�ZN#>(9)3(9@E#¶@$:~ÅEFf#!@SD{,2-�B!XE-a(2#W)�-&#!4?(9)b60Å!x�u��!4?-�'!,\"C#f)�,9-�J$-&,Y 8-7"$4?�!1�-�4`@$:~)3<!-(2 8'_@$1?)+"C#!%&-8@$:{<f�! �"$#s%7"C'!(9)3"$,�(2#s'!1?@IB>�!%�)�(2@E#�KwuA�!4�-�)bD]@a"$,*)3-�1�#N"C)�(9J$-G 8-7"$4?�!1�-�4&Ól)3<!-G'_-�1�%&-�#W)+"$XE-@$:�%&@$,2,2-�XE-m-�B!�!%&"C)3-�BaD5@E1?F$-&1?4A(2#M)�<!-p'!,2"$#W)A"$#>Bg)3<!-p'q-&1?%&-�#f)3"$XE-l@$:�#>@E#I�b'>1�@0B!�!%�)�(2@E#|D]@$1�F$-�1�4�(2#w)3<!-'!,\"C#f)&K�ub#l'!,2"$#W)34�D{<>-&1�-�"=,2"$1�X$-]4�<!"$1�-�@$:ND5@E1?F$-&1?4�(24�%�@E,2,9-&XE-5-&B!�!%&"C)3-�B�xW<f�! �"$#l%7"$'>(9)+"C,>(24�'!1�-�4��! �"$k!,*6"` �@E1?-l(2 8'_@$1?)+"C#f)�: "$%�)�@E1A@$:5'!1�@0B!�!%�)3(9@E#�)3<N"$#a(9#e'>,\"$#W)34YD{<>-&1�-8"`,\"C1�XE-p4?<N"$1?-hD5@E1?F$-&1?4m(94YD{(9)3<>@E�>)"8%�@E,2,9-&XE-A-�B!�!%&"C)3(9@E#�Kv¥=4�"$1�XE�>-&B|(2#w¸I-&%�)3(9@E#M�IKÏ�>xNu5-�/I'q-&%�)�)3<N"�)�<f�! �"$#|%7"$'>(9)+"C,�4�'!(9,2,9@�J$-&1?4�"C1�-� �@$1�-(2 8'_@$1?)+"C#f)�(2#M4��!%+<a'!,2"$#W)34&K~¸0(2 8(2,\"C1�,96$x>)3<>-l4�<N"$1?-p@$:�#!@$#0n0'!1?@IB!�>%�)3(9@E#MD5@E1�FC-&1?4~(94Y"$,94�@`"�1�-7"C4�@E#N"Ck!,2-(2#!B>(2%7"�)3@E1�@$:�<!@SDÒ(2 8'q@E1?)3"$#W)�<f�! G"C#M%7"C'!(9)3"$,�(24�:i@E1�"h'N"$1�)3(2%��!,\"C1H'!1�@0B!�!%�)3(9@E#sO �]-&1? G"C#�x.�]@E�!#>Bg"$#!B��1?(2,9(2%+<!-�4YPSTET$×WV�K ��ÿ

®�Ä ËFØ�Ì�Ï�ÏOÕ�Ô(ÎßÑOÒ�Ï8ÔÂÎÐó}ä±ÔJàOÒ1áßÒ�æ�Ò�áªÕAó!ÔÂàHÒ½â»ïOÎßáßáÐÕ�æ�Ò�ÛFÓ`ÒñØ�Ì�éHâ»Ò � ���y��� æ�Ì�ÛÂÎßÒ�â@Ì�áÐÍ�Õ�â»Ô(ÒqìOØ�áÐéHâÂÎßæ�Ò�áßä�Ì�Ô@ÔJàOÒ�Ø�Î÷ÔÆä8ÿ¢ä�Ò�Ì�ÛFáÐÒ�æ�Ò�á�ÝÌ�ÏHÑ�ÎÐÔ ÎÅâ ÌAáßͯÕ8âÆÔFØqÕ�ͯïHáÐÒ�ÔÂÒ�áßä°ÌAÓHâÂÕ�ÛJÓRÒ�Ñ°ÓzäuÔÂàOÒ�ØqÎÐÔÆä+Ĥä�ÒñÌAÛ¾ÑpéHͯÍ�ÎßÒ�â�ôiŪÌAÛJÎßÌAÔÂÎßÕ�Ï�Õ�ó � ��y��� ö;ÎÐÔÂàOÎßÏ�ÌuØqÎÐÔÆä°ÌAÏHÑ�ä�Ò�Ì�Û¾ÎÅâÍ�ÎßÏOÎÐÍ1Ì�á¦ô® � Ë;àHÌ�æ�Ò�ÌAáÅâÂÕ½ÒqìpïRÒ�ÛJÎÐÍ�Ò�Ï8ÔJÒ�Ñ°ö;ÎÐÔÂà�æ�Ì�ÛÂÎÅÌ�ÔJÎÐÕ�ÏHâ)Õ�ó¤ÔÂàOÒñâ»Ò�ÔÆöZÕ�ÌAáÐÔÂÒ�ÛJÏHÌAÔÂÎßæ�Ò(Í�Ò�Ì�â»éHÛÂÒñâ�ô¾þHÕ�Û ÒqìOÌAÍ�ïOáßÒ�ÝRË)àHÌ�æ�Ò(éHâÂÒ�Ñ�ÔJàOÒâÂàHÌAÛJÒ)Õ�óQÏOÕ�Ïpÿ¢ïOÛJÕpÑpéHØsÔJÎÐÕ�Ï1ö!Ì�Ü�Òñâ�Ý�ÎÐÏHâ»ÔÂÒñÌ�Ñ1Õ�ó�ÔÂàOÒFâ»à`ÌAÛJÒ)ÕAówÏOÕ�Ïpÿ�ïHÛÂÕpÑpéHØqÔÂÎßÕ�Ï1ö!Õ�ÛJÙ�Ò�ÛJâ�ô%ˤàHÌ�æ�Ò)ÌAáÅâ»Õ(ÔÂÛJÎÐÒñÑ�ÔÂàOÒ�ï`Ò�ÛJØ�Ò�Ï8ÔJÌ�Ü�ÒÕ�óbö!Õ�ÛJÙ�Ò�ÛÚâªö;ÎÐÔÂà°âÂÕ�Í�ÒFØqÕ�áßáßÒ�Ü�Ò Õ�Û;Ø�Õ�áßáÐÒ�Ü�Ò�ÝzÎßÏHâ»ÔÂÒ�Ì�ѽÕ�ó%ÔÂàHÒ(â»àHÌ�ÛÂÒ�ÕAó®ØqÕ�áßáßÒ�Ü�Ò Ü�ÛÚÌ�ÑOéHÌ�ÔJÒ�âZÕ�ÏOáßä�ô¤ê;Òñâ»éOáÐÔJâ;Ì�ÛÂÒi�8éHÌAáßÎÐÔJÌ�ÔJÎÐæ�Ò�áßäâÂÎÐÍ�ÎßáßÌ�Û�ô

�E�

Page 25: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

ulB>(9J0(2B!-�)3<>-M'!,2"$#W)348(2#Æ)�<!1�-�-gXE1?@E�!'!4�Ó�'!,\"$#W)�4�D{<!-�1�-g#!@$#0n0'!1?@IB!�>%�)3(9@E#ÆD5@E1?F$-&1?4`"$1?-M,2-�4�48)3<N"$#"g)3<!(91�Br@$:{)3<>-`,\"$kq@E1t:i@$1�%&-Cx�k_-�)bD]-�-&#£"g)�<!(21?BÃ"$#!Bs)bD5@e)�<!(21?B!4&xv"$#!Br 8@E1?-G)3<N"C#Ã)bD5@�)3<!(91�B!4�K^��<!-)3@E'w'N"$#!-�,�@$:���"$k!,9-mRh4�<!@SD{4�-&4?)�(2 �"C)3-�4�@C:�"h1�-&X$1�-&4?4�(9@E#wD{<!-�1�-tuH(2#W)3-�13"$%�)�%&@E,9,2-&X$-~4?<N"$1?-t@E�I)34�(9B!-�)3<!-(2#!B>�!4?)�1?6eD{(9)3<�(2#!B>(2%7"�)3@E1?4~:i@E1�)3<>-�)3<>1�-&-GXE1�@E�>'!4&Kw�N@E1t'>,\"$#W)34~D{<!-&1?-�#!@E#fn0'!1�@0B!�!%�)3(9@E#�D5@E1�FC-&1?4h"$1�-,2-�4�4{)3<N"$#M"h)�<!(21?B�xN)3<!-~%&@0-�Ô8%�(2-&#W)�(24�U>K´×fÙ$R>K5��<!-m%�@I-�Ô8%&(2-�#W)=(94{)bD{(9%&-m"$4{,\"$1?XE-A:i@E1{'!,\"$#W)�4�D{<!-�1�-~)3<!-#!@E#I��'!1�@0B!�!%�)3(9@E#gD]@$1�F$-�1�4~"$1?-lk_-�)bD]-�-&#�"G)3<!(91�Ba"$#!B�)bD5@`)3<!(91�Bg@$:�)�<!-p)3@$)3"$,�,2"$kq@E1�:i@E1?%&-Cx�"$#!Bg)3<>1�-&-)3(9 �-�4�,\"$1?XE-&1�:i@E1�'>,\"$#W)34�D{<!-�1�-�#!@E#h'!1?@IB!�>%�)3(9@E#lD]@$1�F$-�1�4]"$1�-{ 8@E1�-H)�<N"$#h)bD]@�)3<!(91�Bh@$:q)3<!-�)�@$)+"$,N,2"$kq@E1:i@E1�%�-$K

ub#�)3<>-~kq@$)?)3@E ë'N"$#!-�,�@$:���"$k!,9-~R>x!u]�>4�-�)3<!-A:i13"C%�)3(9@E#`@$:�%&@E,9,2-&X$-Y-&B!�>%7"C)�-&BwD5@E1?F$-&1?4=(9#�)3<!-~'!,\"C#f)&x(2#!4�)3-&"$Bw@C:�)�<!-~:i1�"$%�)�(2@E#`@C:�#!@$#I�b'!1?@IB>�!%�)�(2@E#`D5@E1�FC-&1�4�KH�{-&4?�!,9)�4�"C1�-�4�(9 �(9,\"$1�)3@h)3<!-�1?-&4��>,9)34{(9#�)�<!-A)3@E''N"$#!-�,�K{��<!-p%�@I-�Ô8%&(2-�#W)34=(9#!%&1?-7"$4?-&4=:i1?@E U>K´×WU8:i@$1�'!,2"$#W)34�D{(9)3<w,2-�4�4�)�<N"$#M"8)3<>(21�Bw%&@E,9,2-�XE-tX$13"$B!�!"C)3-�4&x)3@�U>K´×fÙ�:i@E1='!,\"$#W)�4=D{<!-&1?-l%&@E,9,2-�XE-mXE1�"$B!�N"�)3-&4�"C1�-pkq-�)bD5-&-�#^"G)�<!(21?Ba"$#!Bg)bD5@�)�<!(21?B!4Y@$:�)�<!-p)3@$)3"$,�x.)3@�IK�Ø~:i@E1v'!,\"C#f)�45D{<!-�1�-�%&@E,9,2-&X$-�X$13"$B!�!"C)3-�4H"$1?-= 8@E1�-�)3<!"$#G)bD5@m)3<!(91�B�@$:�)3<>-�)�@$)+"$,yK��=JE-�13"$,9,�xWZN#!B>(2#!XE45(2#��"Ck!,2-tÙl"$#!BwR�"C1�-A%&@$#!4�(94?)3-�#W)�D{(*)3<�)3<!-�#!@$)�(2@E#`)�<N"C){<f�! �"$#w%&"$'!(*)+"$,�4?'!(2,9,2@SJE-�1�4�<N"7J$-m"h,\"$1?XE-&1]-�o_-&%�)@E#|'!1�@0B!�!%�)3(2@$#!4H)3<N"�)="C1�-AÅEFf#!@SD{,2-�B!XE-�(2#W)�-&#!4?(9JE-�Å!K

�ê8q�  ¡?±HQ¨LA ¤�¦.<�G�G�P]U�A!O$��>@OQK\A!O�<�J ¤�<�JLKVG�A¬S%J.<^HE©«G�>5JVHB?r�¥=4�"�ZN#N"$,q4�'q-&%�(9ZN%&"C)3(9@E#G%+<>-&%+F.xNu�(2#WJE-�4?)�(2XW"C)�-�D{<!-�)3<!-�1])3<>-=-&4�)3(9 G"C)�-&B�4�'!(9,2,2@SJ$-&1�J$"C1�(2-�4]kW68 p�!,*)3(*���!#!(*)4?)3"C)3�!4�KÝ¥=4G"$1�X$�!-&B¶"Ck_@SJE-Cx{4�(2#>XE,2-|�!#!(*)G'!,2"$#W)34G"$1�-w-�/I'_-�%�)�-&B¶)3@�k_-g 8@E1?-w4?-&#!4?(9)3(*JE-|)3@^)�<!-M,9@I%&"$,-&#WJ0(21?@E#! 8-&#W)7xHD{<!(9,2-|,\"$1?XE-| p�!,9)�(*���!#!(9)p'!,\"$#W)�4G4�<>@E�!,2BÆk_-w,2-�4�4�"�o;-�%�)3-�B�KÐ��"$k>,2-gTe4�<!@SD{4G)�<N"C)�)3<!-%&@0-�Ô8%&(9-&#W)p@$#s%&@E,9,2-�XE-h4�<N"$1?-G(94mU>K�T>Ph:i@E1~4�(2#>XE,2-+n0�!#!(*)t'>,\"$#W)34t"$#!B�@E#!,*6eU>K�×W��:i@E1~ p�!,*)3(�nf�!#!(9)Y'!,\"$#W)�4&K��<!(24=%&@E#>Z!1� 84�)3<!"C)Y%+<N"C#!XE-&4A(9#w)�<!-p@SJE-�13"$,9,�,9-�JE-�,�@$:�-&B!�!%&"C)3(9@E#g@$:�)�<!-mD5@E1�F�:i@E1?%&-m(9#�"�%�(9)b6w<N"7JE-l",\"$1?XE-&1~(2 8'N"$%�)~@E#�)�<!-G'!1?@IB>�!%�)�(9J0(9)b6a@$:H4�(2#>XE,2-+n0�!#!(*)�'!,\"$#W)�4~)�<N"$#^)�<!-�6eB!@w@E#s p�!,*)3( n0-&4�)+"$k!,9(24?<! �-�#W)%&@E1?'_@$13"C)�(2@E#!4�K

¥�,9)�<!@E�!XE<�"$,*)3-�1�#N"C)�(9J$-`-�/I'!,\"C#N"C)3(9@E#!4h"$1?-|"$,9D]"76I4h'q@E4�4?(2k!,9-$x�)+"$FC-&#�)3@EXE-�)3<!-�1&xv)3<!-`ZN#!B>(2#!XE4l:i1?@E )3<!-l:i@E�>1Y4�'q-&%�(9ZN%&"C)3(9@E#�)3-&4�)34�B!-�4�%&1?(2kq-&Be(2#e¸I-�%�)�(2@E#!4~Î0K �G)3@|Î0K Î�,2-�#!B�4��>'!'_@$1?)�)3@�)�<!-lJI(9-�D )3<N"�)A)3<!--&4�)3(2 �"C)�-A@$:�)�<!-�4�'!(9,2,9@�J$-&1?4{"$1�-�#!@$){%�@E 8'!,2-�)3-&,*6�4?'!�!1�(9@E�!4�K

�ê8ts CEP�T.FL?�H+JLA!?B?$� ¨LA!£nu9?

u�%�@E#!%�,2�!B!-g)�<!(24`4?-&%�)3(2@$#ÐkW6¤'!1�-�4�-&#W)�(2#!X�-&4�)3(2 �"C)�-&4G:i1?@E "r#f�! pkq-&1`@C:m"C,9)3-�1�#N"�)3(9J$-g4�'q-&%�(9ZN%&"C)3(9@E#!4(2#W)3-�#!B!-�B�)3@m'>1�@Ekq-�)�<!-=1?@Ek!�!4�)3#!-�4�4�@$:�)�<!-=1?-&4?�!,9)�4](2#���"Ck!,2-��>K���<!-�ZN1�4�)H1�@SDÐ(2#h)+"Ck!,2-~PSUm1?-&'!1?@IB!�>%&-&4

�$�

Page 26: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

)3<!-�-�4?)�(2 �"C)3-M:i@$1G)3<!-�k!"$4�-�4?'_-�%&(9Z!%7"C)�(2@E#·(2#¤��"$k>,2-a�>x{%&@$,2�! 8#ÒPEK ��<!-a1�-& �"$(9#!(2#!X�1�@SD{4`'!1?-&4�-�#W)-&4�)3(2 �"C)�-&4�@$:0JC"$1�(2"$#W)34�@$:0)3<!-�k!"$4�-� 8@IB!-�,�K���<!-�4�-�%&@E#>Bt1?@�D^1�-�'_@E1�)34�)3<>-�-&4?)�(2 �"C)3-�:i1?@E Ý"�4?'_-�%&(9Z!%7"C)�(2@E#4�(9 �(9,\"$1�)3@p)�<!-AkN"$4?-Y4�'q-&%�(9ZN%&"C)3(9@E#�x0D{<!-&1?-�)�<!-YB!-�'_-�#!B!-�#f){JC"$1?(\"$k!,9-=(945JC"$,2�>-Y@$:z4�<!(9'! 8-&#W)34�x!#!@$)HJC"$,9�!-"$B!B!-�B�Kv��<!-�%&@0-�Ô8%&(9-&#W)�(2#!%�1�-7"C4�-&4{)3@8U>K�REØ>K

ub#84�-�%�)�(2@E#h×!xfu�'q@E(9#f)�-&Bh@E�>)�)�<N"C)v1�-�4��!,*)34�(2#l)�<!(24�'N"C'_-�15"C1�-�kN"$4?-&B�@E#8"~4?-&,2-�%�)�-&B843"$ 8'!,2-�@C:;'!,2"$#W)34)3<N"�)Y"$1?-�@Ek!4�-�1?J$-&Bgkq@$)3<|(2#ePSTERE�8"$#>B�PST$TW�IK5��,2"$#W)34�(2#`)3<>-t4?-&,2-�%�)�-&Bg4�"$ �'>,2-�"$1?-~,2"$1�X$-&1�)3<N"C#w'!,2"$#W)34(2#h)3<!-�'q@E'!�!,2"C)3(9@E#�Kzub#G1�@SD·�Ix0u�1�-���D]-�(2XE<W)v)3<!-�43"C �'!,9-�)3@~ G"$FC-�)�<!-�'!,\"$#W)v4�(9[&-�B!(24�)31?(2k!�>)�(2@E#l,9@I@$Fp,2(9F$-)3<!-8B!(94?)31?(2k!�I)3(2@$#e(9#�)3<!-|PSTERW��'q@E'!�!,2"C)3(9@E#�KhuA"$4?4�(9XE#eD5-&(9XE<W)34~kN"$4?-&B^@$#^'!,2"$#W)�4�(2[�-$Ót4� �"$,2,9-&1Y'!,2"$#W)341�-�%&-&(*JE-~ �@$1�-AD]-�(2XE<W)�4{)�<N"$#|,\"$1?XE-&1�'>,\"$#W)34�K��I'G¥�:§)3-�1�)3<!-�1�-}��D5-&(9XE<W)3(2#>X!x!@Ek!4?-&1�J$"Ck!,2-�%+<N"$1�"$%�)�-&1?(24?)�(2%�4�@$:'!,\"C#f)�4h"$1�-`4?(2 8(2,2"$1~)�@g)3<!-`@$#!-&4h(2#s)�<!-�'_@$'!�!,\"�)3(2@$#^(2#¶P7TERW�IK���<!-�%&@0-�Ô8%&(9-&#W)l:i1�@E )3<!-�D5-&(9XE<W)3-�B1�-�XE1�-�4�4�(9@E#£(9#Æ1?@�Dj�a(24�U>K�ØET$×!K´� ( ub#Æ)3<>-M#!-}/I)�)3<!1?-&-w1�@SD{4&xHul(9#WJE-&4�)3(9XW"C)3-�D{<!-�)3<!-�1�)3<>-M-&4�)3(9 G"C)�-&B%&@0-�Ô8%&(9-&#W)AJC"$1�(9-&4=D{(*)3<�'!,2"$#W)Y4?(2[&-CKÔ��@`@EkWJ0(2@E�!4='N"C)�)�-&1?#e-� �-�1�XE-�4&Kt�N@E1=4? G"$,9,�'>,\"$#W)34lO ,2-�4�4=)�<N"$#ÃPSUD]@$1�F$-�1�43V�x�)3<>-m%&@0-�Ô8%�(2-&#W)=(24�U>KÏØ$T>K�u�)=(2#!%�1�-&"$4�-�4�)3@�U>KÏRIPt:i@E1� �-�B!(2�> 4�(2[�-&Bg'>,\"$#W)34pO kq-�)bD5-&-�#�P$Pp"$#!BÎ$UpD]@$1�F$-�1�43V�x_"$#!B|B!-&%�1�-7"C4�-&4{)3@�U>KÏÙEÎm:i@E1�,\"C1�XE-Y'>,\"$#W)34tO "$k_@SJ$-mÎCUlD5@E1?F$-&1?4+V}K

ub#Æ �@0B!-�,24h(2#�1�@SD{4`Ù0xHR^"C#!B£T>x]up�!4�-M"$,9)�-&1?#N"C)3(*JE-�%&@$#f)�1�@E,948:i@$1h)�<!-M4?Ff(2,2,�,9-�J$-&,{@$:YD5@E1�FC-&1?4�(2#)3<!-h'!,2"$#W)7K~ub#a'N"$1?)�(2%��!,\"$1�x;(9#�1�@SD²ÙGu�"$,2,9@SDÒ:i@E1=)3<>1�-&-h4?F0(9,2,94=,2-�JE-�,24A(2#>4?)3-&"$Ba@$:�)bD]@>ÓA<!(2XE<�4?%+<!@0@E,�@E1,2-�4�4&x�4?@E 8-�%&@E,9,2-�XE-G"C#!Br%&@E,9,2-�XE-$Kgub#r1?@SDµRIx�u~"$,2,9@�Dø:i@E1t:i@E�>1p4�Ff(2,9,24~,2-�JE-&,94&Ó8,2-�4�4m)�<N"$#s<!(9XE<s4?%+<!@I@$,�x<!(2X$<`4�%+<!@0@E,�x>4�@E 8-Y%&@$,2,2-�XE-Y"C#!B�%&@E,9,2-&X$-$K�ub#�1�@SD¯T>x>uv�!4?-~'>,\"$#W)?��,2-�JE-&,_(2#>:i@$1� �"C)3(9@E#�@$#�)�<!-A#f�! pkq-&1�@$:<!@E�!1?4�D]@$1�F$-�Bhkf6m'!1�@0B!�!%�)3(9@E#l"$#!Bl#>@E#p'!1?@IB!�>%�)3(9@E#mD5@E1�FC-&1?4�:i1?@E Ò)3<!-�¡]-�#!4��>4�@$:;LM"$#f�>: "$%�)3�!1?-&1�4�K�¥=4"$1�X$�!-&B8"$kq@SJE-$xE)�<!-� 8@IB!-�,I(9#p1�@SD¤TY<N"$4�)�<!-{"$B>JC"$#W)3"$XE-])�<N"C)�(*)�1�-�B!�!%�-&4�)3<!-H"$ �@$�!#W)�@$:q �-&"$4��>1�-& 8-&#W)-&1?1�@E1H)�<N"C)�"$1?(24�-�4�:i1�@E Ç)3<!-A(9 �'!�I)+"C)�(2@E#�@C:�4?%+<!@I@$,2(2#>X!K���<!-�%&@0-�Ô8%�(2-&#W)�4�(9#�1�@SD{4�ÙIxNRh"$#!B|Th"$1�-~U>K�ØERU>KÏÎE�l"$#!BwU>K�×ER>x!1�-�4�'q-&%�)3(9J$-&,*6EK

��-�/0)7xWu�)31�6m)�@�"$B!B!1?-&4�4�)�<!-�%&@E#>%&-&1?#l)3<N"C)�%+<N"$#!XE-�4�(2#pD5@E1�FC-&1�4�¨f�!#!@Ek!4?-&1�JE-&B�"$k!(9,2(*)b6m"C1�-H%�@E1�1?-&,\"�)3-&BD{(9)�<m%+<N"$#>XE-&4z(2#~%&@E,9,2-�XE-�4�<N"$1?-$K�u�)�(94�(2#�)3<!-�@E1?6�'q@E4�4?(2k!,9-�)3<N"C)zD5@E1�FC-&1�4�@$:!<>(2XE<!-�1z"$k!(2,9(9)b6= �@SJE-�)3@�%&(*)3(9-&4)3<N"�)�-�/I'q-&1?(2-&#>%&-H,2"$1�XE-�1�(2#!%�1�-7"C4�-&4�(2#~%&@E,9,2-&X$-54?<N"$1�-CK�u�:N)�<!(24z(24�)3<!-5%7"$4?-$x$)�<!-]-�4?)�(2 �"C)3-�Bm4�'>(2,2,9@SJE-&1�D5@E�!,2B1�-�ºN-&%�)h<!(2XE<>-&1t"$k!(2,9(9)b6�@C:{-&B!�!%&"C)3-�BsD]@$1�F$-�1�4l(9#^)3<!-�'!,\"C#f)&x�#!@$)m<!(2X$<!-&1t'!1�@0B!�!%�)3(9J0(*)b6EKwÈ�#!B!-�1p4�@$ �-

®y, Ë!ÑpÎÐæzÎÅÑpÒFÔÂàHÒ(âÂÌ�ͯïHáÐÒFÎßÏm��±�Ü�ÛÂÕ�éOïHâ�ÝzÓHÌ�âÂÒ�Ñ�Õ�Ï�ÔÂàOÒ@ÏzéOÍ'Ó`Ò�Û;ÕAó®öZÕ�ÛÂÙ�Ò�ÛÚâ�ùbáÐÒñâÂâ!ÔJàHÌAÏp��±OÝzÓ`Ò�ÔÆöZÒ�Ò�Ïp�?±¯ÌAÏ`ÑY��±OÝ��}±Aÿ\°�±OÝÒ�ÔJØAô!Ë4Ì�âJâ»ÎßÜ�Ï°Ì�ö!Ò�ÎßÜ�à8Ô4ÔÂÕ½ÒñÌ�ØÚàuïOáßÌ�Ï8Ô¾ÎÐÏuÔJàOÒ(áßÕ�ÏOÜ�Î÷ÔJéHÑpÎßÏHÌAá%âJÌAÍ�ïOáßÒ@ÓHÌ�â»ÒñÑ�Õ�Ï�ÔÂàOÒFó}ÛJÒ��8éOÒ�ÏHØqä�ÕAó®ÔÂà`Ì�Ô)ïOáÅÌAÏ8Ô�ü â)Ü�ÛÂÕ�éOïuÎÐÏÔJàOÒ��?������çZÒ�ÏHâÂéHâ4ÕAó¤Þ�Ì�Ï8éOó�Ì�ØsÔJéOÛJÒ�ÛÚâZïRÕ�ïHéOáßÌAÔÂÎßÕ�ÏQô®y1 õbÕ¯ó}éOÛ»ÔJàOÒ�Û;ÎßÏzæ�ÒñâÆÔJÎÐÜ8Ì�ÔÂÒ�ÔÂàHÒ@ÎßâJâ»éHÒ�Õ�ó®âJÌAÍ�ïOáßÒ@â»Ò�áÐÒñØsÔÂÎßÕ�Ï%ÝpËeàHÌ�æ�Ò Ì�áßâÂÕ�ÔJÒ�â»ÔÂÒñÑ�ö;àHÒqÔÂàHÒ�Û4ÔÂàHÒ@ïOÛÂÕ�ÓHÌAÓHÎÐáßÎ÷ÔÆä�ÔJàHÌ�Ô)̯ïOáÅÌAÏ8ÔÒ�ìzÎÅâ»ÔJâ¤ÎßÏA�?�����¾ÓOépÔeÏOÕ�ÔªÎÐÏA�����&�)ÎÅâªØqÕ�ÛÂÛJÒ�áÅÌ�ÔJÒ�Ñ'ö;Î÷ÔJà½ØÚàHÌAÏHÜ�Ò�â®ÎßϯÔÂàOÒ¾áÐÒ�æ�Ò�áHÕAó�à8éHÍ�Ì�Ï1Ø�ÌAïHÎ÷ÔÚÌAáOÎßÏ1Ì@ØqÎÐÔÆä�Ý�Ì�ÏHѯ˭ó}Õ�éOÏHѯáßÎ÷ÔÂÔÂáßÒØ�Õ�ÛJÛÂÒ�áßÌAÔÂÎßÕ�ÏQô¤ãzïRÒ�ØqÎÐø`Ø�ÌAáßáÐä�Ý8˪ÑOÎÐæzÎÅÑpÒ¾ÔJàOÒFØqÎÐÔÂÎßÒ�âZÎÐÏ�ÔÂàOÒFâÂÌ�Í�ïOáÐÒ�ÎÐÏ ���8éHÌ�Û»ÔJÎÐáßÒ�â�Ý8Ì�Ø�Ø�Õ�ÛÚÑpÎÐÏHÜ@ÔÂÕ'ÔÂàOÒFØÚàHÌ�ÏOÜ�Ò)ÎßÏ�Ø�Õ�áßáÐÒ�Ü�Ò¾âÂàHÌ�ÛÂÒÓRÒqÔÆö!Ò�Ò�Ïh�?�����¯ÌAÏHÑp�����&�pô;õ4àOÒ�Ì�æ�Ò�ÛÚÌAÜ�ÒFïOÛJÕ�Ó`ÌAÓOÎßáÐÎÐÔÆä½ÔJàHÌ�ÔFÌ1ïOáÅÌAÏ8Ô¾Ò�ìzÎÅâ»ÔJâ)ÎßÏh�������¯Ì�ÏHÑ�ÏOÕAÔ ÎÐÏl�����&�'ó}Õ�Û)ø`ÛJâ»Ô]�8éHÌAÛÂÔÂÎßáßÒ�Ýö;àOÎÅØÚà±ÎÅâ�ÔÂàOÒ¯Ü�ÛJÕ�éHï°ÕAóZØ�Î÷ÔJÎÐÒñâ�ö;ÎÐÔÂà±ÔÂàOÒ�âÂÍ�Ì�áÐáßÒ�â»Ô�ÎßÏHØ�ÛÂÒñÌ�âÂÒ(ÎÐÏ�ØqÕ�áÐáßÒ�Ü�Ò'âÂàHÌAÛJÒ�ÎÅâ�±Hô ¬�����ô õ4àOÒ¯ØqÕ�ÛÂÛJÒ�âÂï`Õ�ÏHÑpÎßÏOÜ1øHÜ�éOÛJÒ�â¾ó}Õ�ÛÔJàOÒ(â»ÒñØqÕ�ÏHÑwÝzÔÂàHÎÐÛÚÑ�ÌAÏHÑ�ó}Õ�éHÛ»ÔJà��8éHÌ�Û»ÔJÎÐáßÒ@ÌAÛJÒ�ÝpÛJÒ�âÂï`ÒñØsÔÂÎßæ�Ò�áÐä�Ý�±Oô ¬S�3¬pÝ7±Oô ¬S���'ÌAÏ`Ñ=±Hô ¬I�f�`ô

�C×

Page 27: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

"$4�4?�! 8'>)3(9@E#!4&xW(*)�(24�'q@E4?4�(2k>,2-])�@�"$%&%�@E�!#W)�:i@E1�D5@E1�FC-&1�4v<!-�)3-&1?@EXE-�#!-&(*)b6lkW6l-&4�)3(2 �"C)�(2#!XY 8@0B!-&,94�D{<!-�1�-{)3<!-%&@0-�Ô8%&(9-&#W)34�@E#h4?F0(9,2,9-&Bh"$#!Bh�!#>4�Ff(2,9,2-&Bl,2"$kq@E1�"$1?-{"$,2,9@�D5-&Bp)�@AJ$"C1?6l"C%&1�@$4�4�%&(*)3(2-�4�"$#!Bl)�(2 8-$Kz��@�4�-�-�)3<!(94&x"$4�4?�! 8-5)3<!"C)�)3<!-v'!1�@0B!�!%�)3(9@E#~:i�>#!%�)�(2@E#t(24�ìba�c�dfe_ï ð a�c�dfe ñ PYv ò óa�c�dfe ñ �1v ò ôa�c�dfe õ öa�c�dfe x�D{<!-�1�- ñ P va�c�dfe "$#>B ñ � va�c�dfe "$1�-)3<!-H)�1��!-]k!�>)��!#>@Ek!4�-�1?J$-&BG4?Ff(2,2,9-&Bm"$#!Bh�!#!4?F0(9,2,9-&Bp,2"$k_@$1�(9#!'!�>)�4&xW1�-�4�'q-&%�)3(9J$-&,*6EK�È�#!,2(9F$-]-��f�N"C)3(9@E#l×!xE<>-&1�-� � xñ� � "$#!B­�r"$1?-�"$4�4?�! �-�Bw)�@8kq-�%&@E#>4?)+"C#f)="$%�1�@E4?4�(9#!B!�!4�)31?(2-&4�K�¥=4�4?�! 8-�)�<N"C){)3<>-�)�1��!-�,2"$k_@$1H(2#!'>�>)34"$1�-A-��f�N"$,;)�@8<>@E�!1�4HD5@E1?F$-&B|(2#Iº."C)3-�B`kW6�"$#�"$k!(9,2(*)b6�%�@I-�Ô8%&(2-�#W)�)3<N"C)H%7"$#`JC"$1?6�"$%&1?@E4�4�%�(9)�(2-&4H"$#!B�@SJE-&1)3(9 �-CÓ ñ P va�c�dfe ï ñ PEw óyx{za�c�d�e xWD{<!-&1?-�c�P{(24�<>@E�!1�4�D5@E1?F$-&BgOiD{<!(9%+<G"C1�-�@Ek!4?-&1�JE-&BNV�xI"$#!B�| � dfe;(94�"SJ$-&1�"$XE-�"$k!(9,2(9)b6@$:_4�Ff(2,9,2-&BtD]@E1?F$-�1�4v(2#l%&(*)b6m%{"�)�)3(2 8-5)�Oi�!#!@Ek>4�-&1�JE-�B.V�K�¥¶,2"$1�XE-�1%| � dfeq(2 8'!,2(9-&4�<>(2XE<!-�1�"$k!(9,2(*)b6EK�¸I(2 8(2,2"$1�,*6Exñ � va�c�dfe ï ñ � w ôMxMza�c�dfe x�D{<!-&1?-�| � dfe.(24�"SJ$-&1�"$XE-H"Ck!(2,9(9)b6A@$:!�!#!4�Ff(9,2,2-�BtD5@E1�FC-&1?4&K�Í·<!-�#l-&4�)3(2 �"C)�(2#!X�"='!1?@IB>�!%�)�(2@E#:i�!#!%�)3(2@$#�)3<!"C)](9#!%&,9�!B!-�4]c�PY"C#!B�cz�GOi#!@$) ñ P v "$#!B ñ � v V�xf)3<>-=%&@$#!%&-�1�#�(94v)�<N"C)5%+<N"$#!XE-�4](9#G�!#!@$k!4�-�1?JE-�B"$k!(9,2(9)b6$x}| � d�eY@E1�| � d�eQx]"$1�-�%�@E1�1?-&,\"�)3-&BÃD{(9)�<Æ%+<!"$#!XE-�4G(2# ú\stc�dfebKÆ��<!-|'!1�@0B!�!%�)3(2@$#�:i�!#>%�)3(9@E#�k_-�%&@E 8-&4,2#�ì�a�c�d"{"e_ï�q ú�stc�dfevu¯O"� � | � dfe V>,9# ñ P a�c�dfevu¯O"� � | � dfeyV>,2# ñ ��a�c�dfevu=�m,9#�õ&a�c�d�eBu=¯a�u=¯�c�eBux¯p{"eBuxw�d�e+uxw�a�c�dfe�KÈ�#!B>-&1{)3<!-�4�-t"$4�4?�! �'I)3(2@$#!4&xN@E#>-�D]"76`)3@�"$%&%�@E�!#W){:i@E1�D]@$1�F$-�1�4�<!-�)�-&1?@EXE-&#>-&(9)b6$x.(24�)3@h-&4�)3(9 G"C)�-A �@0B!-�,24D{<!-&1?-~)�<!-�%&@0-�Ô8%&(9-&#W)34�@E#�4�Ff(9,2,2-�B|"$#!B��!#!4?F0(9,2,9-&B�,\"$kq@E1]JC"$1�6`kW6`%&(*)b6�"$#!B|@SJE-�1{)�(2 8-$Ó

,9#�ìba�c�d"{�e_ïrq ú�stc�dfeBux� � d�e�,9# ñ P0a�c�dfevux� � d�e�,9# ñ ��a�c�dfe+u±�t,9#{õ&a�c�dfevu=¯aVux¯c�evux¯p{"eBuDw0dfeBuxw�a�c�dfe OyØWV

�N@E1�-�/>"$ 8'!,2-CxW(2#8%&(9)�(2-�4�D{<!-&1?-=4�Ff(9,2,2-�BlD]@E1?F$-�1�4H"C1�-{@$:�<>(2XE<!-�1��f�N"$,2(*)b6Ex�� � d�e_(24�<!(9XE<!-�1&K��{@SDÝPSU�1�-�'_@E1�)34"$#p-�4?)3(9 G"�)3-]@C:N-&�f�N"C)�(2@E#pØ>K���<!-]%&@0-�Ô8%&(9-&#W)�(24�U>KÏÎ$U>xC,2@SD]-�1�)�<N"$#p)3<>-]-&4�)3(9 G"C)�-5@C:N)3<!-5 �@E1?-]1?-&4?)�1�(9%�)3(*JE- �@0B!-�,�D{<!-&1?-l)3<!-l%�@I-�Ô�%�(2-�#f)�4�@E#a4�Ff(2,9,2-&Ba"C#!Ba�!#!4�Ff(9,2,2-�B�,\"$kq@E1�B!@�#!@$)AJC"$1?6g"$%&1?@E4�4�%�(9)3(9-&4�x�k!�>)�4�)3(2,9,'_@$4�(9)�(9J$-$K���<!(94�,9-&#!B>4�4?@E 8-A%&1�-�B!(2k>(2,2(*)b6�)�@l)3<!-AJ0(2-�D¢)�<N"C)��!#!@Ek>4�-&1�JE-�B�"$k!(9,2(9)b68(94�#!@$)�"h G"��?@$1H4�@E�>1�%&-@$:�k!(\"$4�K����

��(2#N"$,9,96$xI,2"$1�XE-�1H%&(*)3(9-&4� �"S6G G"CF$-AZN1� 84� 8@E1�-A'!1?@IB>�!%�)�(9JE-�kq-&%&"$�!4�-�)3<>-�6�"$,9,2@SD·:i@E1� 8@E1�-A4?�!k_%�@E#I�)31�"$%�)�(2#!X!K�u�:�1�-�)3�!1?#|)�@h4�'q-&%&(2"$,2(9[7"C)�(2@E#�"$1�-A(9 �'q@E1?)3"$#W)7xI(9)�(94�(2#�)3<>-&@E1�6`'_@$4�4�(9k!,2-Y)�<N"C){'!,2"$#W)34{(2#`,2"$1�X$-&1%&(*)3(2-�4h"$1�-` 8@E1?-`'!1�@0B!�!%�)3(9J$-$KsÍ·<!-�#Æu~%&@$#f)�1�@E,H:i@$1l%&(9)b6^'_@$'!�!,\"�)3(2@$#s(2#Ã1�@SDÑPEPEx�)3<!-�%�@I-�Ô�%�(2-�#f)8@$:(2#W)3-�1�-�4?)YB>@I-�4Y#!@$)�%+<N"$#!X$-m4�(9XE#!(*ZN%7"$#W)�,96EK{ub#!%�,2�!B>(2#!X�%&(9)b6�4?(2[�-$x�"C4�D5-&,2,z"$4�@$)3<>-&1=%�(9)b6|%+<N"$1�"$%�)�-&1?(24?)�(2%�4&x(2#!%�,2�!B>(2#!X|�!#!-� �'!,9@S6I 8-&#W)t13"C)�-$x�'_-�1�%&-�#W)lk!,\"C%+Fqx�'_-�1�%�-&#W)p(9 � 8(2XE1�"$#W)�"$#!B^'_-�1�%&-�#W)m:i-& �"$,9-�"C,24�@w<N"$4,2(*)�)3,9-=-�o;-�%�)pO 1�@SDøP��EV�K

® � õ4àOÎÅâ­øHÏHÑOÎÐÏOÜ@ÎÅâ¤ØqÕ�ÏHâÂÎßâ»ÔÂÒ�Ï�Ô¤ö;ÎÐÔÂà�ïOÛJÒ�æzÎßÕ�éHâ­ö!Õ�ÛJÙFÔÂàHÌAÔªéHâ»Òñâ®áÐÕ�ÏOÜ�ÎÐÔÂé`ÑpÎÐÏ`ÌAápö!Õ�ÛJÙ�Ò�ÛÚâbáÐÒ�æ�Ò�áOÑHÌ�ÔJÌFÌ�ÏHÑ(ø`ÏHÑOâ®ÔJàHÌ�Ô��8éHÌ�áÐÎÐÔÆäÕ�ó­ö!Õ�ÛJÙ�Ò�ÛJâ!ÑpÕzÒ�â4ÏOÕ�Ô¾â»Ò�Ò�Í1â!ÔÂÕ�ÓRÒ(â»äpâ»ÔÂÒ�Í�ÌAÔÂÎÅØ�Ì�áÐáßä�ØqÕ�ÛÂÛJÒ�áÅÌ�ÔJÒ�Ñ�ö;Î÷ÔJà�Ø�Õ�áßáÐÒ�Ü�ÒFâ»à`ÌAÛJÒH«¦Þ°Õ�ÛJÒqÔÂÔÂÎwó}Õ�Û»ÔJàHØqÕ�Í�ÎÐÏOÜ7­sô

�EÎ

Page 28: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

~ �ç��êâgæ � 4������� ����gæ ����� ��à 4m� ��4mä��� i4mÞ ã�ä��7Þ&Þ&�~å8æA��ç��øÞb4m���ç��7ß�Þ&æ��

��<!-G 8@E4�)m1?@Ek!�!4�)m-�4?)3(9 G"�)3-&4~@$:5)3<!-84�'!(9,2,9@�J$-&1�(2#>B!(2%&"C)3-l)3<!"C)7x�@E#^"7J$-&13"CXE-$x�"|@E#!-8'_-�1�%�-&#W)+"$X$-G'q@E(2#W)(2#!%�1�-&"$4�-H(9#m%�(9)b6~%&@E,9,2-�XE-54?<N"$1?-](24�"$4�4?@I%�(\"C)�-&BmD{(*)3<m"YU>KÏÎ��QU>KÏÙ�'q-&1?%&-�#f)�(2#!%�1�-7"C4�-](9#m'!1?@IB>�!%�)�(9J0(9)b6GO ��"$k!,9-&4��"$#!B^PSUWV�K�ub4�)�<!(24="G'!,\"C�!4�(9k!,2-� �"$XE#!(*)3�!B!-Ï*Ã�A#>-tD]"S6|)3@�"$4�4?-&4�4Y)�<!-p'!,2"$�!4?(2k!(9,2(9)b6G@$:�)�<!-p-&4�)3(9 G"C)�-&B-�o_-&%�)5(94�)3@A%�@E 8'N"$1�-�(*)�D{(*)3<l)3<!-�B>(9o_-&1�-�#!%&-�(9#l,\"$kq@E1�%&@E4�)34�k_-�)bD]-�-&#�%&(9)�(2-�4�D{(9)�<l<!(2XE<h"C#!Bh,2@SD�<0�> G"$#%7"$'>(9)+"C,�K�ub#g-��0�>(2,2(9k!1�(9�! |x!(9:�ZN1� 84Y"$1?-t1?-7"$,9,96` 8@E1?-t'!1?@IB>�!%�)�(9JE-t(2#w%&(9)�(2-�4�D{(*)3<M<>(2XE<|,2-�JE-&,94=@$:�<0�> G"$#%7"$'>(9)+"C,�x�'!1�@0B!�!%�)3(2@$#m%&@$4?)34�4�<!@E�>,2Bp"C,24�@�k_-5<!(2X$<!-&1�K��=)3<!-�1?D{(94�-$xCZN1� 84zD5@E�!,9Bp1�-�,2@0%7"C)�-v:i1?@E Ò%&(*)3(9-&4�D{(9)3<,2@SDé<0�> G"$#e%7"C'!(9)3"$,�)�@|%�(9)�(2-&4YD{(*)3<a<!(9XE<a<0�> G"$#a%&"$'!(9)3"$,{Oi4�-&-�¸I-�%�)�(2@E#^�EV�Km��<!-�B>(9o_-&1�-�#!%&-h(9#e,2"$kq@E1%&@E4�)34Ykq-�)bD5-&-�#a%&(9)�(2-�4�D{(*)3<M<>(2XE<M"$#!Bg,9@�DÝ<0�> G"$#w%7"$'>(9)+"C,z(94�)�<!-&1?-�:i@E1?-l"��>4�-�:i�>,�kq-&#!%+<! �"$1?Fw"CXW"$(2#>4?)D{<!(2%+<l)�@Y%&@E 8'N"$1?-])3<>-H-&4�)3(2 �"C)�-&Bl-�o_-&%�)�@$:.<f�! �"$#l%7"$'>(9)+"C,I4?'!(2,9,2@SJE-�1�4�@$#l'!1�@0B!�!%�)3(9J0(*)b6EK���(2#!B!(9#!X�)�<N"C))3<!-='!1�@0B!�!%�)3(9J0(*)b6�B>(9o_-&1�-�#!%&-�4Hkq-�)bD5-&-&#�%�(9)3(9-&4vD{(9)3<G<!(2XE<�<f�! G"C#�%7"$'>(9)+"C,;"$#>B�,2@SD·<f�! �"$#�%7"C'!(9)3"$,q"$1�-Â*Á®¼�¸�¹�¼�)�<N"$#�)�<!-YB!(*o;-�1�-&#>%&-&4�(9#�,\"Ck_@E1v%&@$4?)34AOy"$B��?�>4?)3-�B`:i@E15)�<!-=:i13"C%�)3(9@E#G@C:�,2"$kq@E15%�@E4?)])3@m)�@$)+"$,q%&@$4?)343V�xD]@$�!,2Be4��!X$XE-&4�)~)�<N"C)A)�<!-h-&4?)�(2 �"C)3-�Ba'!1�@0B!�!%�)3(9J0(*)b6gXW"$(9#!4Y:i1�@$ Ñ4�'>(2,2,9@SJE-&1?4�"$1�-p)�@I@�,2"$1�XE-Cx�"$#!B�D5@E�!,2B%7"$4�)�B!@E�!k>)�@E#�)3<>-�Z!#!B!(2#>XE4�(2#w¸I-�%�)3(9@E#MÎIK�� �

Lw"$#f�>: "$%�)��!1�(9#!X`DH"CXE-&4~"$1?-l(2#!B!-�-&Ba<!(9XE<!-&1=(2#a%&(*)3(2-�4=D{<!-�1�-l)3<!-h#f�! pkq-&1A@C:5%�@E,2,9-&XE-mXE13"$B>�N"C)3-�4�(24<!(2X$<�xE-�J$-&#8"C:§)�-&1�%�@E#W)31�@$,2,2(9#!X{:i@E1�(9#!B!(9J0(9B!�N"$,f4�%+<>@I@E,9(2#!X>K�¡]@E 8'N"$1?-�"=%�(9)b6~D{(9)3<p"Y,\"$1?XE-54�)3@0%+Fm@$:.4?Ff(2,2,9-&BD]@$1�F$-�1�4H,9(2FC-=¸0-7"C)?)3,2-CxWÍ�¥mxWD{(9)�<G"~%&(*)b6pD{(9)�<�"� p�!%+<G4? G"C,2,2-�1�4?)�@I%+Fl@$:�4�Ff(2,9,2-&BlD5@E1�FC-&1?4&x>,9(2FC-���,q��"C4�@!x���pKz��<!-84�<N"$1?-�@C:H%&@$,2,2-�XE-hXE13"CB!�N"C)�-&4~(2#�¸I-7"�)�)3,9-�,2"$kq@E1Y:i@E1�%�-h(24tU>KÏ�IPExz"$,2 8@E4?)�B>@E�!k!,9-h)�<!-84�<N"$1?-G@$:%&@E,9,2-�XE-{XE13"$B>�N"C)3-�4](9#G��,q��"$4?@!x!UIK9PSØIK%���}Ê�¹�¼tÀ#º�ËNÊ"¼ º�§ ¿§Ë�¸��Ϻ�¼=¿§Ë�¾$¿f»S¿"¾®¿>Á$Â>¾SÀ+¼Qº°º� ¿§Ë�¸$x0"$#!BG@C)3<!-�1vD5@E1�FC-&1?4%+<N"$1�"$%�)�-&1�(94?)�(2%&4�x�"7JE-�13"$X$-p G"C#0�I: "$%�)��!1�(9#!X8D]"$XE-�4Y(2#g¸I-7"�)�)3,9-m"C1�-l�CU�µ<!(2X$<!-&1�)3<N"$#w(2#M��,���"C4�@!K���<!(24(2 8'!,2(9-&4])�<N"C)�"$#|-�/0)31�"�'q-&1?%&-&#W)3"$XE-~'_@E(9#W){(2#|%&@E,9,2-&X$-A4�<N"$1?-�(24�"$4�4?@I%�(\"C)�-&B�D{(9)�<�PEK��h'_-�1�%&-�#W)+"$XE-~'q@E(2#W)<!(2X$<!-&1AD]"$XE-&4�x�"�:§)3-&1�%�@E#W)31�@$,2,2(9#!XG:i@E1�(9#!B!(9J0(9B!�N"$,�@Ek!4�-�1?JC"$k!,9-&4�K�¥�4t(*)A)3�!1?#!4�@E�>)7x�)3<>-8%�@E1�1?-&4?'_@E#>B!(2#!XZNXE�!1?-A:i@E1{"$,2,�ÈY¸`%&(9)�(2-�4�(24APEKÏ�Ix!#!@C)�JE-&1�6�B!(9o_-&1?-&#W)7K´� �

®y� Ë(Ì�Í Ì�ÓHâÆÔJÛJÌ�ØsÔJÎÐÏOÜ�ó}ÛÂÕ�Í ÔJàOÒuØ�Õ�â»Ô�ÕAó¾Ø�ÌAïOÎÐÔJÌ�áZÌ�ÏHÑ9áÅÌAÏHÑ9ÓRÒ�Ø�ÌAéHâÂÒ�ùA« ��­FÔJàOÒ�Ø�Õ�â»Ô'Õ�ó¾Ø�ÌAïHÎ÷ÔÚÌAáZÑOÕ8Òñâ(ÏOÕ�Ô'æ�ÌAÛJä�Í�éHØÚàÌ�ØqÛJÕ�âJâ¤ØqÎÐÔÂÎßÒ�â�µ8Ì�ÏHÑA«9��­­áßÌ�ÏHÑ�ÎßâeÏOÕAÔeÌ�Ï1ÎÐÍ�ïRÕ�ÛÂÔJÌ�Ï�ÔªÎßÏOïOéOÔªó}Õ�ÛZÍ�Ì�Ïzépó�Ì�ØqÔÂéOÛJÎÐÏHÜHô%Ë¢óQÌ(âÂéOÓHâ»ÔJÌ�Ï8ÔÂÎÅÌAáOïHÌ�Û»ÔªÕ�ówïOÛÂÕpÑpé`ØsÔÂÎßÕ�Ï1Ø�Õ�â»ÔJâÕ�ó%Í1ÌAÏzépó�Ì�ØqÔÂéOÛJÎßÏOÜ�ø`ÛÂÍ1â4ØqÕ�ͯҾó}ÛÂÕ�Í�áßÌ�ÏHѽïHÛÂÎÅØqÒñâ�ÝpÌAÏ`ѽÎÐó­ØqÎÐÔÂÎßÒ�â!ö;ÎÐÔÂàuàOÎßÜ�àOÒ�Û!Ø�Õ�áßáÐÒ�Ü�Ò�âÂàHÌ�ÛÂÒ�àHÌ�æ�Ò�ͯÕ�ÛÂÒ ÒqìpïRÒ�ÏHâÂÎßæ�Ò¾áÅÌAÏ`ÑwÝÔJàOÒ�Ï°ÎÐÔ¾ö!Õ�éOáÅÑuÓ`Ò(ïRÕ�âJâÂÎÐÓOáßÒ ÔÂÕ1ø`ÏHÑ�ÔÂàHÌAÔ¾ïOÛJÕzÑOéHØsÔJÎÐæzÎÐÔÆä�ÑpÎ��RÒ�ÛÂÒ�ÏHØqÒñâ;ÓRÒqÔÆö!Ò�Ò�Ï°Ø�Î÷ÔJÎÐÒñâ)ö;ÎÐÔÂà�àOÎßÜ�à°àzéOÍ1ÌAÏ°Ø�Ì�ïOÎÐÔJÌAábÌAÏHÑuáßÕ�öàzéOÍ1ÌAÏ°Ø�ÌAïOÎÐÔJÌ�áQÌAÛJÒ áÅÌAÛJÜ�Ò�ÛeÔJàHÌAÏuÔJàOÒ(ÑpÎ��RÒ�ÛÂÒ�ÏHØqÒñâ4ÎÐÏ�áÅÌAÓRÕ�Û)ØqÕ8âÆÔÚâ�ô®y² õ4àOÎÅâ�øHÜ�éOÛJÒ�Ø�Õ�Í�Ò�â(ó}ÛÂÕ�Í Ì�Ï5ÎÐÏ`ÑpÎÐæzÎÅÑpéHÌ�áZáßÒ�æ�Ò�á�7 ð­ãDÛJÒ�Ü�ÛJÒ�âJâÂÎÐÕ�Ï�Õ�ó)áÐÕ�Ü�ö!Ì�Ü�Ò½Õ�Ï5ØqÎÐÔÆä9ØqÕ�áßáßÒ�Ü�Ò�â»àHÌ�ÛÂÒ�ݭ̱æ�ÒñØsÔÂÕ�Û(ÕAóÎßÏHÑpÎßæzÎßÑpé`ÌAá%ØÚàHÌ�ÛJÌ�ØsÔJÒ�ÛJÎßâ»ÔÂÎÅØ�âZÎÐÏ`ØqáßéHÑpÎßÏOÜ�Ò�ÑpéHØ�Ì�ÔJÎÐÕ�ÏQÝOâ»Ò�ìwÝpÛJÌ�ØqÒ�Ýpí¾ÎßâÂïHÌAÏHÎßØ Õ�ÛJÎßÜ�ÎßÏQÝpò(ô ã�ôHØqÎÐÔÂÎßî�Ò�ÏHâÂàOÎÐï�ÌAÏ`Ñ�Ìo�8éHÌ�ÑOÛJÌAÔÂÎÅØ)ÔJÒ�ÛJÍÎßÏ�ïRÕAÔÂÒ�Ï8ÔÂÎÅÌAá%Ò�ìpï`Ò�ÛÂÎßÒ�ÏHØ�Ò�ÝRÌAÏHÑ�ØqÎÐÔÆä�ÌAÏHÑ�ä�Ò�ÌAÛ)øOìpÒ�Ñ�Ò���Ò�ØqÔJâ�ô;õ4àOÒ�ØqÕzÒ��1Ø�ÎÐÒ�Ï8Ô5«�â»ÔJÌ�ÏHÑOÌAÛÚÑuÒ�ÛJÛÂÕ�Û�­!Õ�Ï°ØqÕ�áßáßÒ�Ü�Ò(âÂàHÌ�ÛÂÒ@ÎÅâ���ô �

«9±OôÏ����­qô9õ4àOÒuâJÌAÍ�ïOáßÒ�ÎßÏHØ�áÐéHÑOÒ�â�ÌAáßáZÍ1Ì�Ï8éOó�Ì�ØsÔJéOÛJÎÐÏOÜ�öZÕ�ÛÂÙ�Ò�ÛÚâ@ÎßÏ5ÔÂàHÒt������±±ÌAÏHÑ|�?����±�çZÒ�Ï`â»éHâ�ô9õ4àOÒ�ÛJÒ�Ì�ÛÂÒY���&�°ØqÎÐÔÂÎßÒ�â�ôË©ÏHâ»ÔÂÛJéOÍ�Ò�Ï8ÔÚÌAá)æ�ÌAÛJÎÅÌAÓOáßÒ�Ò�â»ÔÂÎßÍ�ÌAÔÂÒñâ½ÌAÏHÑWïHÌ�ÏOÒ�á�ÑOÌ�ÔÚÌDÒ�â»ÔÂÎßÍ�ÌAÔÂÒñâ1ÕAó ÔÂàOÒ�âJÌAÍ�Ò°Í�ÕpÑpÒ�á¾ä8ÎßÒ�áÅÑ>âÂÎÐÍ�ÎßáßÌ�Û½ØqÕzÒ��½ØqÎßÒ�Ï8ÔÚâ�ô�ãpÒ�Ò�$Ø

Page 29: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

¥�4�4?�! �-�:i@E1m"w �@E 8-&#W)~)3<N"�)m)3<>-`"$kq@�J$-�%&@$1�1�-�,\"C)�(2@E#e(24m"$#s�!#fk!(2"$4�-�Br-&4�)3(2 �"C)�-�@$:�)�<!-�-�o;-�%�)l@$:%&@E,9,2-�XE-�4�<N"C1�-v@E#tD]"$XE-�4&K�ub#t-&�f�!(9,2(2k>1�(2�> wx&)�<!(24�D]"$XE-vB!(9o_-&1?-&#!%�-5 m�!4?)z1�-�ºN-&%�)�'!1?@IB>�!%�)�(9J0(9)b6AB>(9o_-&1�-�#!%&-�4&K�]-&%&"$�!4?-A G"$#f�>: "C%�)3�>1�(2#>X~ZN1? �45'!1�@0B!�!%�-=XE@0@0B!4v)�<N"C)H"$1�-�)313"CB!-&B�@$#�)3<>-Y#N"C)�(2@E#N"C,N G"$1?F$-�)7x0(9:�D5@E1�FC-&1?4D]-�1�-�#�¨´)� 8@E1?-t'!1?@IB>�!%�)�(9JE-m(2#M<>(2XE<I��DH"CXE-m%�(9)3(9-&4�x_ �"$#f�>: "$%�)3�!1?(2#!X8ZN1� 84�D5@E�!,9Bg,2-&"SJ$-l"$#!BM1�-&,9@I%&"C)3-�)3@,2@SDÝD]"$XE-t%&(9)�(2-�4&K{¸I'q-&%�(9ZN%&"$,2,*6Ex!D5-m4?<!@E�!,9BM@Ek!4?-&1�JE-m)�<N"C)�)3<!-~'!1�@0B!�!%�)3(*JI(*)b6�(2#!%�1�-&"$4�-t"$4�4?@I%�(\"C)�-&B|D{(9)3<"m@E#!-�'_-�1�%�-&#W)+"$X$-Y'_@$(2#W)](9#!%&1?-7"$4?-Y(2#�%&@E,9,2-�XE-{4�<N"$1?-Y(24v1�@$�!XE<!,*6wP$K �O��U>K Ù�� UIKÏR>xfD{<!-�1�-AU>KÏÙt(94v)�<!-=4?<N"$1�-@$:z@E�>)�'!�>)H)�<N"C)�(945)b60'!(2%&"$,2,*6�"$4�4?�! �-�B�)3@lXE@p)�@p,\"Ck_@E1YOi)�<!-Y1�-� G"C(2#!(9#!XmUIKÏ�pXE@0-&45)3@l%7"C'!(9)3"$,§V}K�ub#`@$)�<!-&1D]@$1�B!4�xI(*:q)�<!-{B!@0%&�! 8-&#W)3-�BG%�@E1�1?-&,\"�)3(2@$#pk_-�)bD]-�-&#�%�@E,2,9-&XE-]4�<N"$1?-�"$#!BhDH"$X$-&4v(24�#!@$)�4?'!�!1?(2@E�!4�xW)3<!(94�kN"$%+F@$:])�<!-8-&#WJE-�,2@E'q-�%&"$,2%��!,\"�)3(2@$#�4��!XEX$-&4?)�4~)�<N"C)t"�1�-&X$1�-&4?4�(9@E#�@C:H,2@$X|@$�>)3'!�I)t@$#�%�@E,2,9-&XE-l4?<N"$1�-MO <>@E,2B!(9#!X%&@E#>4?)+"C#f)~@$)�<!-&1A(9#!'!�>)�4+V�4?<!@E�!,9B�6I(9-&,9Ba"�%&@0-�Ô8%&(9-&#W)�#!@$)AJ$-&1?6M: "$1=:i1�@$ ÑU>K�R>Kp�A#g)�<!-l@$)�<!-&1A<N"C#!B�x�(9:'N"$1�)�@C:�)�<!-tB>@I%��! �-�#W)3-&B|B!(*o;-�1�-&#>%&-~(2#�,\"$kq@E1H%�@E4?)�4�kq-�)bD5-&-�#g%&(*)3(9-&4HD{(9)�<�<!(2XE<|"h,2@SD¢<0�> G"$#|%7"C'!(9)3"$,(24~B!�!-8)3@g�!#>@Ek!4�-�1?J$-&Br<!-�)3-&1?@EXE-�#!-&(*)b6Ex�)3<>-�-�o;-�%�)l@$:H%&@E,9,2-&X$-84?<N"$1?-G@E#s@$�>)3'!�I)m4?<!@E�!,9Bsk_-8,2-�4�4~)3<N"$#U>K�R>K�ub#M"C#f6�%&"$4�-Cx!)3<!-�-�o;-�%�)�@$:�%�@E,2,9-&XE-=4�<N"$1?-�@E#w@$�>)3'!�I)�4?<!@E�!,9B�#!@$){kq-~,2"$1�X$-&1H)3<!"$#|U>KÏRIK

��<>-t-�4?)3(9 G"�)3-&B|-�o_-&%�)Y@$:�%&@E,9,2-�XE-A4�<N"C1�-~@E#M@E�I)3'!�>)�(94�,9-&4?4�)�<N"$#gUIKÏR>KHL|6� 8@E4?)�1�@$k!�!4?)�-&4�)3(9 G"C)�-&4(2#���"$k!,9-h��'!,\"$%�-p)3<!-l4?'!(2,9,2@SJE-�1Y-�o_-&%�)t"C)�"$1?@E�!#!BeU>KÏÎ��QUIK ÙIK~u�%&@E#!%�,2�!B>-p)3<N"C)A)�<!-l-&4�)3(9 G"C)�-&B�'!1?@IB>�!%��)3(*JI(*)b6�B!(9o_-&1?-&#!%�-&4Ykq-�)bD5-&-�#�%&(*)3(2-�4�D{(*)3<w<!(2XE<M"$#!Bg,9@SDÒ,2-�JE-&,94�@C:�<f�! G"C#g%7"$'>(9)+"C,�"$1�-t%&@E#!4?(24�)3-&#W)�D{(9)3<B!(9o_-&1?-&#!%�-&4Y(9#M,2"$k_@$1�%�@E4?)�4�)�<N"C)A"C1�-�)b6I'>(2%7"C,2,96�@$k!4�-�1?JE-�B�k_-�)bD]-�-&#a%&(*)3(9-&4{D{(9)3<w<!(2X$<g"$#!Bw,2@SDÒ,9-�JE-�,�@$:<f�! G"C#w%&"$'!(9)3"$,�K

� �Ç�8����Þ&��ç��&�8�

��%&@E#!@$ �(94?)34v<N"7JE-�,2@$#!Xt4?'_-�%&�!,2"C)3-�B�)�<N"C)v<f�! G"C#G%7"C'!(9)3"$,! �"S6hX$-&#!-�13"C)�-�4?(2XE#!(*ZN%7"C#f)v4?'!(2,9,2@SJE-�1�4&K�c��!%7"$4O�PST$RERWV�x�"$ 8@E#!Xr@$)�<!-&1?4&x="$1�XE�>-&4�)3<!"C)�<f�! G"C#Ð%&"$'!(*)+"$,�-�/0)3-�1�#N"$,9(9)�(2-&4�"$1�-�,2"$1�XE-M-&#!@E�>XE<¶)3@Ã-�/I'!,2"$(2#B!(9o_-&1?-&#!%�-&4�kq-�)bD5-&-&#�'_@0@E1A"C#!B�1�(9%+<e%�@E�!#W)31?(2-�4A(2#�,2@$#!X�1��>#eX$1�@SD�)3<a13"�)3-&4�K~�v-�)7x�B!-�4�'!(*)3-h4�(9XE#!(9Z!%7"$#W)'_@$,2(2%�6M(9 �'>,2(2%&"C)3(9@E#!4�x_4�6I4�)3-� G"C)�(2%l-� �'!(91�(9%7"$,z-�J0(2B>-&#!%�-�@E#�)�<!-8"$%�)��N"$,� �"$XE#!(*)3�!B>-p@$:v-�/0)3-�1�#N"C,2(9)�(2-�4A(24�?�!4?)pk_-�XE(2#!#>(2#!XM)�@g-& 8-&1?XE-$Ka��1?-�J0(2@E�>4pD]@E1?F�<!"$4m:i@0%&�!4?-&BÃ@E#rB!(*o;-�1�-&#>%&-&4l(9#s-&B>�!%7"C)�(2@E#s"$#!BsD]"$XE-&4"$%&1?@E4�4� 8-�)31?@E'q@E,2(*)+"$#G"$1�-&"$4&K

ub#A)�<!(24�'N"$'q-&1�x�u_)+"CF$-v"� �@E1?-�B!(21?-&%�)z"$'!'!1?@W"$%+<~kf6=:i@I%��!4�(9#!X{@E#A)3<!-�'!1?@IB!�>%�)3(*J0(9)b6Y@C:> �"$#f�>: "$%�)3�!1?(2#!X-&4�)+"$k!,9(24?<! �-�#W)34&Kru~4?)3"$1?)l:i1?@E "gJ$-&1?6Ã4?(2 8'!,2-G@Ek!4�-�1?JC"C)�(2@E#�ÓG(9:�<f�! G"C#�%&"$'!(*)+"$,H4?'!(2,9,2@SJE-�1�4l"C%�)3�!"$,2,*6-�/I(24�)7x0)3<!-�#GD]-�4�<!@$�!,2B�@$k!4�-�1?JE-�)3<N"C)5'!,2"$#W)34](9#�%�(9)�(2-&4�D{(9)�<�"~,\"$1?XE-�4�)3@0%+Fh@$:�<f�! �"$#�%7"C'!(9)3"$,."$1�-� �@$1�-

Þ°Õ�ÛÂÒ�Ô»ÔJÎq«�ó}Õ�Û»ÔJàHØqÕ�ͯÎßÏOÜ7­ªó}Õ�Û)ÑpÒqÔÚÌAÎßáßâ�ô

�EÙ

Page 30: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

'!1�@0B!�!%�)3(*JE-l)3<N"C#e@C)3<!-�1?D{(24?-l4�(9 �(9,\"$1�'!,\"C#f)�4A(2#�%�(9)3(9-&4=D{(*)3<e"�4� �"$,9,2-&1�4?)�@I%+Fg@C:]<f�! �"$#�%7"C'!(9)3"$,�KmL|6ZN#!B!(9#!XE4�4��>XEXE-&4�)�)3<N"C)&xz"C:§)3-�1A%&@E#W)31?@E,2,9(2#!X�:i@E1�"`'!,\"$#W)�@SD{#e,2-�J$-&,�@$:5<f�! �"$#�%&"$'!(*)+"$,yx�'!,\"C#f)�4A,2@0%7"C)�-&B(2#£%�(9)�(2-&4�D{<!-&1?-g)3<!-M:i1�"$%�)�(2@E#¤@$:�%&@E,9,2-�XE-MXE1�"$B!�N"�)3-&4GXE1�-�D�: "$4�)3-�1�-�/I'q-&1�(9-&#!%�-&B·,\"C1�XE-�1G(2#>%&1�-&"$4�-�4`(2#'!1�@0B!�!%�)3(*JI(*)b6s)3<!"$#Ã4�(2 8(2,2"$1m'>,\"$#W)34l(9#Ã%&(9)�(2-�4pD{<!-&1?-|)�<!-`:i13"$%�)3(2@$#r@$:=%�@E,2,9-&XE-`X$13"$B!�!"C)3-�48X$1�-�Dµ �@$1�-4�,9@�D{,*6EK�¥=,*)3<!@$�!XE<euA%&@E#W)31?@E,�:i@E1~'_-�1� �"$#!-&#W)m'!,\"$#W)t%+<N"$1�"$%�)�-&1�(94?)�(2%&4t"$#!B^4?)+"�)3-�"$#!Bs(9#!B!�!4�)31?6a)�(2 8-}nJC"$1?60(2#>Xl'!1�@0B!�!%�)3(9J0(*)b6G4?<!@I%+Ff4�xqu�%&"$#�#!@$){%&@$ �'!,9-�)�-&,9681?�!,2-Y@$�>)H)3<>-A'_@E4?4�(9k!(2,9(9)b6h)3<N"�)��!#!@Ek>4�-&1�JE-�BM%&(*)b6<!-�)�-&1?@EXE-&#>-&(9)b6h �"76p-}/>'>,\"$(9#8'!"$1?)�@$:q)3<>-�-�4?)�(2 �"C)3-�Bl-�o_-&%�)&K���@SD5-�JE-�1&xI4�-�J$-&1�"$,.%&@E#!4?(2B!-�13"C)�(2@E#>4�4��!XEX$-&4?))3<N"�)�)�<!-�-&4�)3(2 �"C)�-&B�-�o_-&%�)�(94�#!@$)�%&@$ �'!,9-�)�-&,96�4�'>�!1�(9@E�!4&K

��(21�4�)7x$)�<!-{-&4�)3(2 �"C)�-&Bl%&@0-�Ô8%�(2-&#W)v(24�1?-& �"$1�F�"$k>,96t1�@Ek!�>4?)5"$%&1?@E4�4�4?'_-�%&(9Z!%7"C)�(2@E#!4�K��Y(*o;-�1�-&#W)v"$4?4��! 8'I�)3(9@E#�@E#`)3-&%+<>#!@E,2@$X$6ExN@E 8(9)?)3-�B�J$"C1�(\"Ck!,2-�4&xN"$#>B�JC"$1?(\"$k>,2-YB!-�ZN#!(*)3(2@$#!4{"$,2,_6I(9-&,9B!4�4�(9 �(9,\"$1v1�-�4��!,*)34&K

¸0-&%&@$#!B�x�)3<>-�-&4�)3(2 �"C)�-&Bs'!1?@IB>�!%�)�(9J0(9)b6eB!(*o;-�1�-&#>%&-&4mk_-�)bD]-�-&#�%&(9)�(2-�4~D{(*)3<s<!(9XE<r"$#>Bs,2@SD²,2-�JE-�,24p@$:<f�! G"C#~%&"$'!(*)+"$,W"C1�-�%&@$#!4�(94?)3-�#W)zD{(*)3<�B!(*o;-�1�-&#>%&-&4�(9#~ �"$#f�>: "$%�)3�!1?(2#!XHD]"$XE-�4�)3<N"C)z"C1�-�)b60'!(2%&"$,2,*6=@$k!4�-�1?JE-�Bk_-�)bD]-�-&#`%�(9)3(9-&4�D{(9)�<�<>(2XE<�"$#!B�,2@SD£,9-�JE-�,.@$:�<f�! �"$#G%&"$'!(*)+"$,yK�¡]@E#>4�(24�)3-�#f)5D{(9)�<G"~ �@0B!-&,!)�<N"C)v(2#>%&,2�>B!-&4k_@C)3<r4?)3"$#!BN"C1�BrXE-�#!-&1�"$,]-��0�>(2,2(9k!1�(9�! Ñ:i@E1?%&-�4l"$#!Br4?'!(2,9,2@SJE-�1�4&x�)3<!-�'>1�@0B!�!%�)�(9J0(9)b6eXW"C(2#!4tXE-&#!-�13"C)�-&BrkW6<f�! G"C#w%&"$'!(9)3"$,�4?'!(2,9,2@SJE-�1�"$'!'q-7"$1�)�@8kq-�@$o_4�-�)�kW6`(9#!%&1?-7"$4?-&B|,\"$kq@E1H%�@E4?)�4&K

��<>(21�B;x��!#!,2(9F$-hB!-�#!4�(*)b6�@$:5<0�> G"$#e%7"C'!(9)3"$,�x�B>-&#!4?(9)b6a@$:5'!<W604�(2%&"$,�%7"C'!(9)3"$,�@E�>)�4�(9B!-8"�'>,\"$#W)�<N"$4�#!@-�o_-&%�)h@E#^)3<>-�'!,\"C#f)m'!1�@0B!�!%�)3(*JI(*)b6EKg��<>(24p(9#!B!(2%&"C)3-�4t)�<N"C)mD{<!"C)lu~"$ Ì-&4�)3(2 �"C)�(2#!Xw(24m#>@$)p4?(2 8'!,96e"$#"$XEXE,9@E 8-&13"�)3(2@$#G-�o_-&%�)=X$-&#!-�13"C)�-&B|kf6�B>-&#!4?(9)b6`@$:�-&%�@E#!@E 8(2%�"C%�)3(*J0(9)b6EK

�N@E�>1?)3<;x04?'!(2,9,2@SJE-�1�4�B!-�%7"76hD{(9)3<�-&%�@E#!@E 8(2%�B!(94?)3"$#!%&-�D{(9)�<!(2#8"t%�(9)b6$K�LM"$#f�>: "$%�)3�!1?(2#!X~'!,2"$#W)34vk_-�#!-�Z!) �@$1�-H:i1�@$ ¦<f�! G"C#8%&"$'!(*)+"$,!(9#h(2#!B!�>4?)31?(2-�4�)3<N"C)5"$1?-{XE-&@EX$13"$'!<>(2%7"C,2,96t"$#>B�-�%&@E#!@$ �(9%7"$,9,96~%&,9@E4�-�)3@� �"$#f�I�: "$%�)��!1�(9#!Xt)�<N"$#G:i1?@E ²<f�! G"C#�%7"$'>(9)+"C,q(9#G(9#!B!�!4�)31�(9-&4v)3<N"C)H"$1�-�XE-&@$XE13"$'><!(2%&"$,2,*6p%&,9@E4�-�k!�>)]-&%&@$#!@E 8(2%7"C,2,96: "$1&KÆ��<!(24h1?-&4��>,9)84��!'>'_@E1�)348)3<!-`J0(2-�Dè)3<N"�)�4?'!(2,9,2@SJE-�1�48"$1?-|1?-&,2"C)3-�B�)�@e)�<!-M"C �@E�>#f)8@$:=(2#W)3-�13"$%�)3(9@E#!4k_-�)bD]-�-&#MD5@E1?F$-&1?4=(9#`B!(9o_-&1?-&#W)�(2#!B!�>4?)31?(2-�4&K

��(9:§)3<;x])3<!-�-�4?)�(2 �"C)3-�B£4�'!(9,2,9@�J$-&18(24�,2"$1�X$-|:i@E1�<!(�nW)3-&%+<¶'>,\"$#W)34�"$#!B¶'!,2"$#W)34�)�<N"C)`-� �'>,2@S6� �@E4�)3,*64�Ff(2,9,2-�BÆ,2"$k_@$1&K�u�)G(948[�-&1?@�:i@E1h,2@SDè)�-&%+<Æ'!,\"$#W)�4G"$#>B¤'!,2"$#W)34l)3<N"�)G-� �'!,9@S6r �@$4?)3,*6r�!#!4?Ff(2,2,9-&B�,\"$kq@E1�K��<!(24m(2#!B!(9%7"C)�-&4�)3<N"�)p<f�! �"$#s%7"C'!(9)3"$,�-�/0)3-�1�#N"$,9(9)�(2-&4t"$1?-G 8@E1�-�(2 8'_@E1�)+"$#W)�:i@E1~'!1�@0B!�!%�)3(9@E#!4t)�<N"C)p"$1�-Ff#!@SD{,2-&B>XE-h(2#W)3-�#!4�(*JE-$Km��(2#!"$,2,*6Ex.)3<!-l-�4?)3(9 G"�)3-&B�4?'!(2,9,2@SJE-�1Y(24=,\"$1?XE-t:i@E1=4�(2#>XE,2-p�>#!(9)A'>,\"$#W)34�x�"$#!B�4? G"$,9,:i@E1� p�!,*)3(�-�4?)3"$k!,2(94�<! 8-&#W)�4�%&@E1?'_@E1�"C)3(9@E#!4H)�<N"C){<N"7JE-~'!,2"$#W)34{(2#` �"$#W6`B!(*o;-�1�-&#W)�%&(*)3(9-&4&K

u{%�@E#!%&,9�!B!-p)�<N"C)A'!1?@IB>�!%�)�(9J0(9)b6wXW"$(9#!4�:i1?@E �<f�! �"$#a%7"C'!(9)3"$,�4?'!(2,9,2@SJE-�1�4A"C'!'_-&"$1=)�@`k_-p-� �'>(21�(9%7"$,9,961�-�,2-�JC"$#W)t:i@E1pÈ~K ¸_Kz �"$#f�>: "$%�)��!1�(9#!X!Kw��@SD5-�JE-�1&x�kq-&%7"C�!4�-�)�<!-G4�)3@0%+F�@$:{<f�! �"$#s%&"$'!(*)+"$,�XE1?@�D{4t4�,9@�D{,*6@SJE-&1�)3(9 �-Cx;)3<>-l%&@E#W)31?(2k!�I)3(2@$#�@$:]<f�! �"$#a%7"C'!(9)3"$,�4?'!(2,9,2@SJE-�1�4Y)3@�-�%&@E#!@$ �(9%pXE1�@SD�)�<e(94A#!@$)�,2"$1�XE-CKm��<!-

�$R

Page 31: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�@$4?)A1?@Ek!�!4�)A-&4�)3(2 �"C)�-&4=(9#M)3<>(24='!"$'_-�1Y(2#>B!(2%&"C)3-~)3<N"C)=<f�! G"C#�%7"$'!(*)+"$,z4�'>(2,2,9@SJE-&1?4Y"$1?-p1�-�4�'q@E#!4?(2k!,9-m:i@E1"$#h"7JE-�13"$XE-�@C:;UIK9PHÒ(2#>%&1�-&"$4�-](2#p@E�I)3'!�>)�'_-�1�6E-&"$1�B!�!1?(2#!XY)�<!-YPSTER$U$4&K��.@$1�)3<>-�"7JE-&1�"$XE-� �"$#f�>: "$%�)3�!1?(2#!X'!,\"C#f){(9#`)3<!-~ÈtKϸ_K*x!)3<!(94�"$ �@$�!#W)34H)3@8"$kq@E�>) � PSU>x�UEUEUl'_-�1H6E-&"$1&K

��"7JI(9#!Xg-�4?)+"Ck!,2(94�<!-�B^)3<!-G-�/I(24�)3-&#>%&-�@$:{<f�! �"$#s%7"C'!(9)3"$,54?'!(2,9,2@SJE-�1�4�x�@E#!-�(9 �'q@E1�)+"$#W)~B!(21?-&%�)3(2@$#^:i@E1:i�>)3�>1�-h1�-�4�-7"C1�%+<e4�<!@E�>,2Bak_-p)�<!-h(2#WJE-�4?)�(2XW"C)�(2@E#�@C:v)�<!-l-�/>"$%�)~ �-�%+<N"$#!(94� 84Y)3<!1?@E�!XE<�D{<!(9%+<�4?'!(2,9,2@SJE-�1�4"$1�(94�-CK

�$T

Page 32: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��æd�EæA��æA���{æAç¥=%�-& 8@EXE,2�;x��pKvOQPSTETEØEV�x���¥ë 8(2%�1�@$:i�!#>BN"C)3(9@E#M:i@E1�4?@I%�(\"$,�(9#!%&1?-7"$4?(2#!X|1�-�)3�!1?#!4~(2#a<f�! G"C#^%7"C'!(9)3"$,�"$%�%&�I�

p�!,\"�)3(2@$#�¨9x��o¿!Á®¼}ÊI¹�¼} ½��Qº�¿�¼�ËqÁ$Â�º�� ��À#º�Ëzº�½l¿�À+¾5'!';KqÙEÙ$T�nIR$U$×!K¥=%�-& 8@EXE,2�;x��pK�"$#!Br¥�#!XE1�(94?)&x]�>K�O�PSTET$TWV�x��Ï��@SDë,\"$1?XE-`"$1?-�<f�! G"C#�%&"$'!(*)+"$,5-�/0)3-�1�#N"$,9(9)�(2-&4 *è-�J0(2B!-�#!%&-

:i1�@E è%�@E 8'!�!,24?@E1?6G4�%+<!@0@E,9(2#!Xl,2"SD{4�¨9x/���O��K¥= 8-&1?(2%7"C#���,2-�%�)31?@E#!(9%&4v¥=4�4?@I%�(\"C)�(2@E#MO�P7TETWÙEV}xn��¥=-&"tB!-�ZN#!(*)3(2@$#�@$:;)3<!-�<!(2XE<fnf)3-�%+<G4�-�%�)�@E1&¨*x� �½B¡�¹�¼3¾�Ê�Á$ÊI¹+¾{K�]-&1? G"C#�xW��K9xf�5@E�!#!B�x0�>K$"$#!Bh�A1�(9,2(9%+<!-&4�xW��KNOQPSTET$×WV�x¢� ¡]<N"$#>XE-&4�(9#m)3<!-]B!-& �"$#!Bp:i@E1�4�Ff(2,9,2-�Bp,\"$kq@E1�D{(9)�<!(2#

��K�4�KI �"$#f�>: "$%�)3�!1?(2#!X>Ó���J0(2B!-�#!%&-=:i1?@E ¦)3<>-="$#>#0�!"$,_4?�!1?J$-�6�@$:� �"$#f�>: "$%�)3�!1?-&4&¨*x��o¿>Á®¼}Ê�¹�¼} ½£�Qº�¿�¼}ËqÁ$º��d��À#º�Ëzº�½l¿�À+¾ ÊO¤r¥ x.�EØWÙSnI�$TWÙIK

¡](2%�%&@E#!-p"$#!Bg�z-&1?(�O��CUEUW�EV}x:��ubB!-�#f)�(9:§60(2#>XG<f�! �"$#g%7"C'!(9)3"$,�-�/0)3-�1�#N"$,9(9)�(2-&4�Ó]��<!-�@E1?6|D{(9)�<g"$'>'!,2(9%7"C)�(2@E#`)3@�!4{%&(9)�(2-�4&¨*x�½l¿f½·¹#ºmK

�Y@E 84&x�L�K*x��Y�!#!#>-$x��AK�"$#>Be�z1�@$4�F$-Cxz÷hK;�~K�O�PSTETEÙEV�x;��Í�@E1�FC-&1?4&x�DH"CXE-&4�x�"C#!B�)3-&%+<>#!@E,2@$X$6q¨9x¦�o¿>Á®¼}Ê�¹�¼} ½�ñº�¿�¼}ËqÁ$Â�º��d�{À#º�Ëzº�½l¿�À+¾ ÊñÊ�å x.�EÎ$�Sn>�$TEU>K�N@E4?)�-&1&x5c�K9x5�="C,9)3(*DH"C#!XE-&1�xv�>K�"$#!B�÷A1�(9[7"$#�x5¡=K�OQPSTETERWV}x��Ï¥�XEXE1?-&XW"C)�-`'!1�@0B!�!%�)3(*JI(*)b6sXE1?@SD�)3<�Ó�c�-&4?4�@E#>4

:i1�@E è 8(2%�1�@0-&%�@E#!@E 8(2%�-�J0(2B>-&#!%�-$¨*x:§©¨��=ª¬«¥º�¼�­�¿§Ë�¸�®HÁ�»Q¹�¼AO ØEREUE�EV�K��,2"$-&4?-&1�xN��K.c�KzOQPSTETETEV�x/�Ïc�-7"$1?#!(2#!Xh(9#`%&(9)�(2-�4&¨*x/�Qº�¿v¼}ËqÁ$Â�º��k¯!¼e¡+Á$Ë°�{À#º�Ëzº�½l¿�À+¾ ø3± O��EV}x.�EÎC×�nIÙEÙIK��,2"$-&4?-&1�xN��K.c�K."C#!BgLw"$1�-Cx.�pK.¡=KzO��$U$U>P�V�x3� ¡](*)3(2-�4{"$#!B�4�Ff(9,2,24�¨9x3�/²�³:� Ê¢¥ K��,2"$-&4?-&1�xN��K.c�K*xq¸I%+<!-�(2#!Ff �"$#�x.�>KN¥tK."$#!Bw¸I<!,9-&(*:i-&1&xI¥mKzOQPSTETWÎEV}x3�Ï��%&@E#!@$ �(9%AXE1�@SD�)3<|(2#�"l%�1�@E4?4��b4?-&%�)3(2@$#

@$:�%�(9)�(2-&4�¨9x3�ñº�¿�¼}ËqÁ$Â�º��d�«º�Ëz¹�Ê�Á®¼}½��{À#º�Ëzº�½l¿�À+¾ òn± O�P�V}K��-�,2,2-�1�4�)3-&(9#�x$�>K�÷hK*x`��-&�! �"$1?FqxC�pK�"$#!Bt��1?@E4�FC-$xW÷lK���K0O�PST$TETWV�xO�´Ís"$X$-&4&x�'!1?@IB!�>%�)3(*J0(9)b6~"$#!B�D5@E1�FC-&1�%+<!"$1��

"$%�)�-&1�(94?)�(2%&4�Ó���J0(2B>-&#!%�-{:i1?@E '!,\"$#W)��b,2-�JE-�,>'!1?@IB!�>%�)3(9@E#p:i�!#!%�)3(9@E#!4�"$#>BhD]"$XE-�-��f�N"C)3(9@E#!4�¨9x:�o¿>Á®¼}Ê�¹�¼} ½�ñº�¿�¼}ËqÁ$Â�º��d�{À#º�Ëzº�½l¿�À+¾ ʵ´ Oy�EV�x!×WU$T�n0×E×fÙ0K��-�#!B!-&1?4�@E#;x��mK�O��$U$U>P�V�x3� LM"C1�4�<!"$,2,y¨�4�4?%7"$,9-A-&%&@$#!@E 8(2-&4�¨9x/¨ê¼#º�É�˶¯zËN¿f»®¹�¼3¾�¿§Ê ½�½l¿f½·¹#ºtK�E"Co_-$xv¥mK*xv�z13"S��)3-&#fkq-&1?X!x�L�K�"$#!B���-�#!B!-&1?4�@E#;xH��K{O�PST$TE�WV�x�� ��-�@EXE1�"$'!<!(9%�,2@0%7"$,9(2[&"C)3(9@E#�@C:�Ff#!@SD{,9-&B!XE-

4�'!(9,2,2@SJ$-&1�4~"$4�-�JI(9B!-&#>%&-&B�kW6a'N"C)3-�#W)t%�(9)3"C)3(9@E#�¨*x¦�o¿!Á$ÊI¹�¼} ½k�Qº�¿�¼�ËqÁ$Â\º�����À#º�Ëzº�½l¿�À+¾ ÊO¤r· Oy�WV}xzÎEÙEÙSnÎ$TER>K

�$@SJ$"C#!@SJI(9%$xW��KC"C#!Bl�{@Ek�xC�~K>O�PST$RETWV�xO����<!-]XE1?@SD�)3<l"$#>BmB!(*o;�!4?(2@E#t@$:NFf#!@SD{,2-�B!XE-C¨9x¢ª9¹�»S¿y¹�É´º��=��À#º�Ëzº�½l¿�À¸ Ê�¿B¾$¿y¹+¾©¹ ± O ×fV}x.Î$ØETSn>Î$RW�IK÷A@E �(9#!4�FW6|"$#>Ba¸I(2-�XE-&,5OQPSTET$×fV}x;� Lw-&"$4��!1?(2#!X�-&B!�>%7"C)�(2@E#N"C,�"C)?)+"$(9#! 8-&#W)�(2#w)�<!-m%�'!4&¨*x;®9º+»�¿0Â*Á$Êy¿yº�Ë»º�¿f»S¿U¼

¾�¿yº�˵½¾¯ ¸ ¨ê¿v¼ ¹�Á®¿ðº��� �¹�Ë>¾�¿f¾=Kc��!%7"$4�x���K���K�OQPSTERERWV}x;� �Y#g)3<!-m �-�%+<N"$#!(9%&4Y@$:�-�%&@E#>@E �(9%tB>-�JE-�,2@E'> �-�#f)&¨9x��Qº�¿�¼}ËqÁ$Â5º��¿�«º�Ëz¹�Ê�Á®¼}½�{À#ºW¼

Ëzº�½l¿�À+¾ åñå xN��n0×W�IKLM"$1?4�<N"$,9,�x!¥tK�O�P7RETEUWV}x3®�¼�¿§Ë;À�¿Ï»qÂ�¹+¾Ôº��À�{À#º�Ëzº�½l¿�À+¾�x.LM"$%� �(9,2,\"C#�KLw@E1?-�)�)�(�x>�{K;Oi:i@$1?)3<>%&@E 8(2#!XWV�xÁ� ��4�)3(2 �"C)�(2#!X�)3<!-=-�/0)3-�1�#N"$,_1�-�)3�!1?#�)3@p<!(9XE<!-�1]-&B>�!%7"C)�(2@E#;Ó���JI(9B!-&#>%&-=:i1?@E

%&1�@$4�4���4�-�%�)3(9@E#N"$,�"C#!Bw,9@E#!XE(*)3�!B>(2#N"$,qBN"C)3">¨*x/�Qº�¿v¼}ËqÁ$Â�º��d�{À#º�Ëzº�½·¹�Ê�¼}¿�À+¾�K��"C�!%+<�x_�>K.��KzO�PSTET$�WV�x/�Ï��1�@0B!�!%�)3(9J0(*)b6`XW"$(9#!4H:i1�@E ëXE-&@$XE13"$'><!(2%A%�@E#!%&-�#W)313"�)3(2@$#w@$:�<f�! G"C#w%&"$'!(9)3"$,�Ó���JW�

(2B!-�#!%&-A:i1�@$ µ)3<!-�%�(9)3(9-&4�¨9x/�Qº�¿�¼}ËqÁ$Â]º��k¯[¼Q¡+Á$Ë°�{À#º�Ëzº�½l¿�À+¾ ò+ø x.�$REU�n0×WU$U>K��@$kN"$%+F.xg�>K|OQPSTERW�$V�x»�´Ís"$X$-&4&x|1�-�#W)34Æ"$#!Bê)3<!-Ð�f�N"$,9(9)b6¦@C:M,9(9:i-$¨*x»�Qº�¿v¼}ËqÁ$Âíº���®9º� ¿§Ê ¿�À�Á$Â��{À#º�Ëzº�½l½¥n¤ O ØWV�x�P��$ÎEÙSnqP��$Ù$R>K

Page 33: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��@$kN"$%+F.x_�>K�OQPSTEREREV�x/�´Ís"CXE-&4�xq1?-&#W)34�"$#!Bw"$ 8-&#!(*)3(9-&4&Óv�Y(*o;-�1�-&#>%&-&4�"$ 8@E#!XlD5@E1�FC-&1?4Y"$#!B|1�-�XE(2@$#!4&¨*x/�{À#ºW¼Ëzº�½l¿�À ��ËrÂb¿0¿f¼}½ ån± OQP�V�xq�C��n0×!PEK

�;�!%+F$-�1&x5c�K��lK9x��A"$1�kW6ExvLeK���K�"$#!Bs�]1�-�D]-�1&x]L�K��=K]O�P7TETERWV}x��Ïub#W)�-&,2,9-&%�)3�N"$,5<f�! G"C#s%7"$'>(9)+"C,]"$#>Bs)3<!-k!(21�)3<�@$:���K�4�K.k!(2@$)�-&%+<!#>@E,2@EXC6G-�#f)�-&1?'!1�(94�-&4�¨9x/��½·¹�¼}¿�À�Á$Ë��{À#º�Ëzº�½l¿�ÀÀª9¹�»S¿y¹�É ·r· OQP�V�x.�CTEU�nI�EU$Ø>K

Page 34: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

ëÄÃ�ö�ÃÅÃmÒ&Ò/ïÇÆ�ë­ÜfÈÙ&ïÇÆðæ�̶æÊÉ�Ë�úÌÃ�Æ�ÌÍË/ÃmÙ�ö&Ì�ÎmïdÎ�æ Ó$��,2"$#W)�,2-�JE-&,NB!"C)+"Y@E#h@E�I)3'!�>)&xf%7"$'!(*)+"$,yx$<!@$�!1�4�D5@E1�FC-&B�x

(2#!B>�!4?)�1?6l"C#!Bl �-�)31?@E'_@$,2(9)3"$#t"$1�-&"A"$1�-H:i1?@E Ò)3<!-�¡]-�#!4��!4�@$:q �"$#f�>: "$%�)3�!1?-&1�4�K���<!-�¡]-�#!4��!4�@$:;LM"C#0�I: "$%��)3�!1?-&1?4Y%&@SJE-�1�4Y)�<!-m�!#>(9JE-�1�4?-p@$:� �"$#f�>: "$%�)��!1�(9#!XG'>,\"$#W)34{D{(9)�<sPp@E1� 8@E1�-~-& 8'!,2@S6$-&-&4�K�¸I(9#!%&-p¸0)+"$#>BN"$1�BLw-�)�1�@E'q@E,9(9)+"C#8¸0)+"C)�(24�)3(2%&"$,!¥�1�-7"�O�¸>Lg¸I¥AV�%�@IB!-�45(9#hB!(9o_-&1?-&#W)�6E-7"C1�45"$1�-{kN"$4?-&B�@E#�B>(9o_-&1�-�#W)5B>-�ZN#!(*)3(9@E#!4@$:z �-�)31?@E'_@$,2(9)3"$#�"$1�-&"$4&x!u�%�@E1�1?-&%�)])3<!-lPST$TW�p¸!Lg¸0¥Ò%&@0B!-=)3@lkq-Y%�@E#!4�(94?)�-&#W)�D{(9)�<G)3<!-lP7TERW�tB!-�ZN#!(*)3(2@$#�Ku{B!-&,9-�)3-p"$,2,�)3<!-l¸!Lg¸I¥¦)�<N"C)�"$1?-p#!-�D )�@�)3<!-G¨ÏTW�843"$ 8'!,2-m"$#!BgD5-&1?-8#>@$)Y'N"C1?)A@$:v"C#!@$)3<>-&1�¸!LM¸I¥ê(2#¨ÏRE�IK ³  �]-&%&"$�!4�-�)3<!-� �-�)31�@$'_@E,9(9)3"$#e"$1�-&"wB!-�ZN#!(9)�(2@E#eDH"C4m%+<N"$#>XE-&BÃ"C:§)�-&18PSTERW�0x�uA"$,94�@w1�-&B>-�ZN#!-MPSTETW�¸!Lg¸I¥�4A)3@� G"�)3%+<g)3<>-`PSTERW�Gkq@E�!#!B!"$1�(9-&4&Ktu�B>@�)3<!(94A(2#g)bD5@|4�)3-�'!4&Kl��(21�4�)7x�u� �"$F$-p)�<!-lB!-�Z!#!(9)�(2@E#�@$:%&@E�>#f)�(2-�4�%�@E#!4?(24?)�-&#W)�@�J$-&1�)3(9 �-=k_-�%7"$�!4?-�4�@E 8-A%&@E�>#f)�(2-�4�<!"SJ$-t%+<!"$#!XE-�B|)�<!-&(91�k_@E�>#!BN"$1?(2-&4�B>�!1�(9#!Xl)3<!-PSTEREUC4�"$#!B�)�<!-&1?-�"$1�-Y%�@IB>(2#!Xl-�1�1�@$1�4H(9#G)3<!-~¡]-�#!4��>4�@C:�Lw"$#f�>: "$%�)��!1�-�1�4{%&@$�!#W)b6�%&@0B!-CKv�z@lB!@l4?@!x!u��!4�-"l'!1�@EX$13"$ ²D{1�(*)�)3-�#�kf6`��"$#>B>6`�]-�%+F$-�1="$#>B|'>1�@SJ0(2B!-�BwkW6|¡H�v¸_Kq�Y#!,*6`Îp�!1?kN"$#�%&@E�>#f)�(2-�4{"$1�-�"Co_-&%�)3-�BOi)�<!-�6^"$1�-8,2@0%7"�)3-&B�(2#s��-�@E1�XE(2">x��Y(91�XE(9#!(\">x�¥�1�(2[�@E#N">x]��-�DµLw-�/I(2%�@�"$#!Bs¡H"$,2(*:i@E1�#>(\"WV}K���@w G"CF$-G4?�!1�-)3<N"�)v"$,2,I%&@E�!#W)b6h%+<N"C#!XE-&4v<N"7JE-{kq-&-�#�%&"$'>)3�>1�-&B;x0u��!4�-�)�<!-�¡]@E�!#W)b6��A1�@E�!'8���f�!(9JC"$,9-&#!%�6EK�u�ZN#!BGÙY �@$1�-%+<N"$#!X$-&4=(9#í�Y(21?XE(2#>(\"m%�@E�!#W)3(9-&4{)3<N"C)�"$1?-�#!@$)�(2#!%�,2�!B>-&B�(2#`)3<>-p¡H�v¸|'>1�@EXE1�"$ |Kv�A#>%&-~u]<N"7JE-m"8%�@E�!#W)b6%&@0B!-t)�<N"C)=(24�%&@E#!4?(24�)3-&#W)=@�J$-&1=)�(2 8-$x.uH�!4?-m)3<>-l¡]@E�!#W)b6g��1?@E�!'M���f�!(*JC"$,2-�#!%�6�ZN,9-&4�)�@G(9B!-&#W)3(*:§6w¸!Lg¸I¥k_@$�!#!BN"$1�6G%+<!"$#!XE-�4�(2#�)�<!-pPST$TW�p¡]-&#>4��!4�@$:�Lw"$#f�>: "$%�)��!1�-�1�4�K]�CØE�l¸!Lg¸0¥=4�"$1?-Y(2B>-&#W)3(*ZN-&B�(9#gPSTERE�t"$#!BPSTETW�0K

um"$4�4?(2XE#�-7"C%+<¤'!,2"$#W)l)3@�"$#Æ(9#!B!�!4�)31�6Wnf%&(9)b6Ã%�-&,9,HkN"$4?-&B¤@$#¤��nfB!(2XE(*)8¸Iu�¡ë%�@IB>-w"C#!B¶¸!LM¸I¥�%�@IB>-$K¥=,*)3<!@E�>XE<�×�n0B!(9XE(9)Y¸Iu�¡Ò%&@0B!-&4�"C1�-l"7JC"$(2,2"$k!,9-$xqu�%+<>@I@E4?-8���bB!(9XE(9)�(9#!B!�!4�)31�(9-&4=)�@` G"�/>(9 �(9[&-~%&@E#>4�(24�)3-�#!%�6D{(9)�<m)3<!-H¡]-&#!4?�!4�@$:q�z@E'!�!,2"C)3(9@E#m(9#!B!�!4�)31?6~%�,\"$4?4�(9Z!%7"C)�(2@E#�K��N@E1z'!1�@0B!�!%�)3(2@$#tD5@E1�FC-&1�4�xWk_@C)3<m)�<!-H#f�! pkq-&1@$:vD]@E1?F$-�1�4p"C#!B�)3<!-h#f�! pkq-&1�@$:5<!@E�!1?4AD]@E1?F$-�B^(24A1?-&'q@E1?)�-&Ba(2#�)�<!-�¡]-&#!4?�!4t@C:�LM"C#0�I: "$%�)��!1�-�1�4&K��N@E1#!@E#I��'!1�@0B!�!%�)3(9@E#MD5@E1�FC-&1�4�x�)3<!-p#f�! mk_-�1Y@$:�D5@E1�FC-&1�4�(94=Ff#!@SD{#�x�k!�>)=)3<!-p#f�! mk_-�1A@$:�<!@E�!1?4=D5@E1�FC-&Be(24#!@$)m1�-&'q@E1�)3-&B;Kw��<!-�#f�! pkq-&1m@C:�<!@E�!1?4p@$:�#>@E#I�b'>1�@0B!�!%�)�(2@E#aD5@E1�FC-&1�4l(94t(9 �'>�>)3-�B^kW6�"$4�4?�! �(9#!Xw)�<N"C)'!1�@0B!�!%�)3(9@E#�"$#!B�#!@E#0�b'!1?@IB!�>%�)3(9@E#�D5@E1�FC-&1�4�(2#�)�<!-A43"C �-A'!,2"$#W)HD5@E1�FG)�<!-A43"C �-A#f�! pkq-&1�@C:�<!@$�!1�4�'q-&1%7"$'>(9)+"IK

Ù&ïÇÆðæ�̶æ'É�Ë ÒÏÉ}Ò&Ì­õ�Ã�ö&ÜYÉ�ÆÊÐ �A"C)+"G@$#g)3<!-l4?F0(9,2,z,2-�JE-&,�@$:�D]@$1�F$-�1�4�(2#�-&"$%+<a'!,\"C#f)Y"$#!B�@E#)3<!-|4�<!"$1�-w@$:Y%�@E,2,9-&XE-�XE1�"$B!�N"C)�-&48@E�>)�4�(2B>-�)�<!-M(9#!B!�!4�)31�6Ã%&@E 8-`:i1�@E )�<!-�P7TEREUe"$#!BÐPSTETEU�¡]-&#!4?�!4�-�4@$:���@E'>�!,\"C)�(2@E#;Kg��@� �"�/I(2 8(2[�-h43"$ 8'!,2-�4�(9[&-$x�u��!4?-�)3<!-�ÎB J$-&1�4?(2@E#r@C:�)�<!-`���!k!,9(2%GÈ�4�-|L|(2%&1?@IB!"C)+"¸>"$ 8'!,2-lOy��ÈYLg¸>V�K!��<!-t¡]-�#!4��!4{(9#!B!�!4�)31?6G%&,2"$4�4?(9ZN%&"C)3(9@E#�(24]#!@$)H)�<!-~¸Iu�¡¶@E#!-$x>k!�>){<N"$4{"p4?(2 8(2,2"$1�,2-�J$-&,@$:�B!-�)+"$(9,."$4�)3<!-�����B!(2XE(*)v¸Iu�¡¤%�@IB!-�4&K�È�4�(2#>X~)�<!-�#!"$ �-{@$:;)3<!-�(2#!B>�!4?)�1?6Ex0u� �"C)�%+<�)3<>-Y¡]-�#!4��!4](2#!B!�>4?)31�6%&,2"$4�4?(9ZN%&"C)3(9@E#�)3@h)3<!-t¸Iu�¡·@E#!-CK

¥�4�(9#|)�<!-m¡]-&#!4?�!4Y@$:�LM"$#f�>: "$%�)3�!1?-&1�4�x; 8-�)�1�@E'q@E,2(*)+"$#�"C1�-7"hB!-�ZN#!(9)�(2@E#>4�"C1�-~#!@$)�%&@E#!4?(24�)3-&#W)="$%&1?@E4�46E-&"$1�4�K5�z@h G"$FC-Y)3<!-lP7TETEUh¸!Lg¸0¥ %�@IB>-&4�%&@$#!4�(94?)3-�#W)�D{(*)3<`)3<>-lPSTEREUpB!-�ZN#!(*)3(2@$#�x>u5"$B!@E'I)�"p'!1�@0%&-�B!�!1�-%&@E#>4�(24�)3-�#f)�D{(*)3<G)�<!-Y@E#>-YB!-&4?%&1?(2kq-&B|"$kq@�J$-=:i@E1v)3<!-�¡]-�#!4��>4�@C:�LM"$#f�>: "$%�)3�!1?-&1�4�K�³ � �v-7"$1?4H@$:�-&B>�!%7"C)�(2@E#

Ä�à Ë4ÌAáÅâ»Õ�ÑpÒ�áÐÒ�ÔÂÒ(Ö Ì�ä�ÔJÕ�Ï�ÓRÒ�Ø�Ì�éHâÂÒ ÎÐÔ)ö4Ì�â;ØqÕ�Í�ÓOÎßÏOÒñÑ�ö;ÎÐÔÂà�ãzïHÛÂÎßÏOÜAø`Ò�áÅÑwÝB7 í3ÌAÏHÑ�ÔJàOÒ�ÛJÒ@ÎßâÂÏQü Ծ̯Ü�ÕzÕpÑ�ö4Ì�ä1ÔÂÕ½âÂÒ�ï`ÌAÛÚÌ�ÔÂÒÔJàOÒ�ÍÇÌAÏHÑBÑ�Õ�ÛZÔÂÕ½ÑOÒqøHÏOÒ@Ò�Î÷ÔJàOÒ�Û;Õ�ÏOÒ@â»Õ¯ÔJàHÌ�Ô)ÎÐÔ)ÛÂÒñâ»Ò�Í�ÓOáßÒ�â4ÎÐÔJâ;ó}Õ�ÛJÍ=ÎÐÏp�������OôÄb© ãzïRÒ�Ø�Î÷øRØ�ÌAáßáßä�ݪË(Ì�âÂâÂÎÐÜ�Ï5ÎßÏHÑpÎßæ8ÎÅÑpéHÌ�áßâ¯Ì�Í�Ò�ÔÂÛJÕ�ïRÕ�áßÎ÷ÔÚÌAÏ�Ì�ÛÂÒñÌ°Õ�Ï�ÔÂàOÒuÓHÌ�âÂÎÅâ�Õ�ó;ÔÆöZÕ�Ü�Ò�Õ�Ü�ÛÚÌAïOàHÎßØ�ÌAáªÎÅÑpÒ�Ï8ÔJÎ÷øHÒ�ÛJâ�ݪëªéHÓOáÐÎÅØò�â»Ò�Þ�ÎßØ�ÛÂÕpÑOÌAÔJÌ�×)ÛJÒ�Ì�â�«�ëZò¾Þ�×�â�­;Ì�ÏHÑuÍ�ÒqÔÂÛJÕ�ïRÕ�áßÎÐÔJÌAÏ°Ì�ÛÂÒñÌ1ØqÕpÑpÒ�â�ôZõ4àHÒFøHÏOÒ�â»Ô¾Ü�Ò�Õ�Ü�ÛJÌ�ïOàOÎÅØ éOÏOÎÐÔJâ)ÎÅÑpÒ�Ï�ÔJÎ÷ø`Ò�Ñ�ÎßÏ�ÔJàOÒ5¬eÒâJÌAÍ�ïOáßÒ�âFÌAÛJÒ�ëeò¾Þ±×¾â�ÝQö;àOÎÅØÚà�Ì�ÛÂÒ�ÌAÛJÓOÎÐÔÂÛÚÌAÛJä�Ü�Ò�Õ�Ü�ÛJÌ�ïOàOÎÅØ�ÑpÎßæzÎßâÂÎßÕ�ÏHâ�ÔÂà`Ì�Ô(ØqÕ�Ï�ÔÚÌAÎßϱÏOÕ�áßÒ�âJâ�ÔÂàHÌ�Ï���±�±OÝ ±�±�±1ïRÒ�Õ�ïHáÐÒ�Ò�Ì�ØÚàQôÞ°Õ8âÆÔZÎÐÏHÑOÎÐæzÎÅÑpéHÌAáÅâªö;àHÕ(áÐÎßæ�Ò¾ÎÐϽÍ�Ò�ÔÂÛJÕ�ïRÕ�áßÎ÷ÔÚÌAÏ1ÌAÛJÒ�Ì�âªÌAÛJÒ)ÌAáÅâ»Õ(Ì�âÂâÂÎßÜ�ÏOÒñѯÌ(ͯÒ�ÔÂÛJÕ�ïRÕ�áßÎ÷ÔÚÌAÏ1ÌAÛJÒ�ÌFÎÅÑpÒ�Ï�ÔJÎ÷ø`Ò�Ûñô®í¾Õ�öZÒ�æ�Ò�Û�Ý�âÂÕ�Í�ÒëZò¾Þ�×�â1âÆÔJÛJÌ�ÑOÑpáßÒ�ÔJàOÒ�Ó`Õ�éOÏHÑOÌ�ÛÂäDÕAó�ÔÆöZÕ�Õ�Û¯Í�Õ�ÛJÒ�ãOÞ±ãp×¾â1Ì�ÏHÑ5ÎßÏ�ÔÂàOÒñâ»ÒDü ͯÎÐìpÒ�Ñwü¤ëZò¾Þ�×�â1ÌAÏWãOÞ±ãp×ÇØqÕpÑpÒ�ÎÅâ'ÏHÕAÔÌ�âÂâÂÎÐÜ�ÏOÒ�ÑQô­õ4àOÒñâ»Ò@ü Í�Î÷ìpÒñÑwü8ëZò¾Þ�×�âeÌ�ÛÂÒ)Ì�âÂâÂÎÐÜ�ÏOÒ�ѯÌ�ãpÞ�ãp×0ØqÕpÑpÒ¾Õ�Ï�ÔÂàHÒ)ÓHÌ�âÂÎÅâ¤ÕAó�ÔÂàHÒFçZÕ�éHÏ�ÔÆä ª ÛÂÕ�éOï1ý��8éOÎßæ�ÌAáßÒ�ÏHØ�ä(øHáßÒ�â�ôõ4àOÒ�Í�ÒqÔÂàHÕzÑOÕ�áßÕ�Ü�ä�éHâÂÒ�ÑDÔJÕ±Ì�âJâ»ÎßÜ�Ï�ãOÞ±ãp× Ø�ÕpÑpÒ�â'ÌAÏHÑ�ÔJÕ±Í1Ì�ÔÚØÚà5Þ±ãp× Ì�ØqÛJÕ�âJâ'çZÒ�Ï`â»éHâÂÒ�â�Îßâ�ÎßÑOÒ�Ï8ÔÂÎÅØ�Ì�áªÔÂÕ±ÔÂàOÒ�Õ�ÏOÒ�ÎÐÏÞ°Õ�ÛÂÒ�Ô»ÔJÎq«�ó}Õ�Û»ÔJàHØqÕ�ͯÎßÏOÜ7­sôªË¢ó¤Õ�æ�Ò�Û�¬}±eÒ�ÕAó­ÔÂàOÒ(ëZò¾Þ�×�ï`Õ�ïOéOáÅÌ�ÔÂÎßÕ�Ï�ÎÅâ)Ì�ÔÂÔÂÛJÎÐÓHépÔJÌ�ÓOáÐÒFÔJÕ½Ì�â»ÎßÏOÜ�áßÒ(Þ±ãp×�ÝHËZÔÂàOÒ�Ï�Ì�âJâ»ÎßÜ�ÏuÌAáßáÎßÏHÑpÎßæzÎßÑpé`ÌAáÅâ4ÎÐÏ�ÔÂàHÌAÔ;ëZò¾Þ�×�ÔJÕ�ÔJàOÒFÍ�ÌIÓÆÕ�ÛJÎ÷ÔÆä1Þ±ãO×(ôHãzÎßÏHØqÒ ÔJàOÒ@Þ±ãp×3ÑpÒqø`ÏOÎ÷ÔJÎÐÕ�Ï�ö4Ì�â!ØÚàHÌ�ÏOÜ�ÒñÑ�Ì�ó�ÔJÒ�Û!ÔÂàHÒ]������±'çZÒ�ÏHâÂéHâ�Ý

Page 35: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

"$1�-p"$4�4?(2XE#!-�Bg)3@G)�<!-l-&B>�!%7"C)�(2@E#M%&@0B!-&4A�!4?-&Ba(2#^PSTETEUG¡]-&#!4?�!4A:i@E,2,9@�D{(9#!X8��"$k>,2-�Pp(9# ÷A@E �(9#!4�FW6w"$#!B¸I(2-�XE-&,]O�P7TETEØWV}K{¸I(2#>%&-GP7TERW�h"$#!BsPST$TW�8"C1�-~#!@$)�¡]-�#!4��>4Y@$:��z@E'!�!,2"C)3(9@E#|6$-7"$1?4&x_,2(2#>-7"$1{(2#W)�-&1�'q@E,2"C)3(9@E#�(24�!4�-�Bw)�@8-�4?)�(2 �"C)3-Y)�<!-�%&@E,9,2-&X$-Y4�<N"C1�-�:i@E1APSTERW�p"C#!B�P7TETW�IK´³b�

úÔÃ�ö}ÙÔá ÜeÆ6Õ Ù&ïÇÆðæ�̶æ�É�Ë úÔÃ�ƶÌÍË/ÃmÙÔöÔÌ�ÎmïdÎ�æDöÏÉ Ù&ïÇÆ|æ�̶æ'É�Ë ÒÏÉ}Ò&Ì õ}Ã�÷ö&ÜYÉ�ÆÖÐ ��,\"$#W)�nf,2-�J$-&,_BN"C)+"p:i1?@E Ç)�<!-~¡]-&#>4��!4�@$:�LM"$#f�>: "$%�)3�!1?-&1?4�"C1�-A �"C)3%+<!-�B`D{(9)3<`B!"C)+"l@E#�D5@E1�FC-&1?4-&B!�>%7"C)�(2@E#�kW6g(9#!B!�!4�)31�6�"$#!B�%�(9)b6$Ktu�"$4?4�(2X$#�-7"$%+<a'!,2"$#W)A(2#M)�<!-8¡]-&#>4��!4�@$:]LM"$#f�>: "C%�)3�>1�-&1?4~"$#!B�-7"C%+<D]@$1�F$-�1H(2#h)3<>-A¡]-&#>4��!4H@C:���@E'>�!,\"C)�(2@E#l)�@p"t%�(9)b6En0(9#!B!�!4�)31?6h%�-&,9,qk!"$4�-�B�@E#�)�<!-= 8-�)�1�@E'q@E,9(9)+"C#h"$1�-&"t%&@0B!-"$#!B�"�����B!(2XE(*)m(9#!B!�!4�)31�6sB!-�ZN#!(9)�(2@E#;K��z@� �(9#!(2 8(2[�-8)�<!-�"$ 8@E�!#W)l@$:� 8-7"$4?�!1�-� �-�#W)h-&1�1?@E1&x�u~-�/I%�,2�!B!-"$,2,z(2#>B!�!4?)�1?6En0%�(9)b6|%&-�,2,24�D{(9)�<g,2-�4�4=)�<N"$#sPSU8D]@E1?F$-�1�4&K���<!-�1�-h"$1?-p"�)�@$)+"C,�@$:v�C×E×!Pm%�-&,9,24&K=��<!-l"7JE-�13"$XE-#f�! pkq-&1v@$:;D5@E1�FC-&1?4](2#�"�%&-&,9,N(245ÎC×WØA(9#wPST$REU�"$#!B��ERWÙA(2#�PSTETEUIK�¥=kq@E�>)�PSR� @$:�%�-&,2,94�%&@E#W)3"$(2#8@E#!,*6l@E#!-'!,\"C#f)&K�Oi��<!-�:i1�"$%�)�(2@E#a@$:]%&-&,9,24A)3<!"C)~(2#!%�,2�!B!-h@E#>,96�@E#>-�'!,2"$#W)~(24�%7"$,9%&�!,2"C)3-�Be:i@$1�)�<!-8kN"$,\"C#!%&-�B�'N"C#!-&,�!4�-�B�:i@E1�1?-&XE1?-&4�4?(2@E#>4&xz#!@$)�:i@E1Y)3<>-8'q@E'!�>,\"C)�(2@E#�@$:5'!,2"$#W)34&KÏV���<>-8 8-&B>(\"$#a%&-�,2,�(9#�P7TETW��(2#!%�,2�!B>-&4hPSUEUD]@$1�F$-�1�4="$#!B|×8'>,\"$#W)34�K�³b³

��<>-|¡]-&#!4?�!4h@$:=LM"$#f�>: "$%�)3�!1?-&1�4h<N"C4l�ER>PExÏÙEÙ$�w'!,\"$#W)�4p(2#¶PST$RW�M"$#!BÃ�C×WR>x��ERWÎw(9#¶PSTETW�IK��z@�k!�!(9,2B)3<!-`k!"$,\"$#>%&-&BÃ'N"C#!-&,H�>4�-&B�(2#�)3<!(94l'N"$'q-&1&x�uAZN1?4?)h-�/I%�,2�!B!-|"$,9,5'>,\"$#W)34p)�<N"C)lB>@e#>@$)h"$'!'q-7"C1pk_@C)3<Ã(2#PSTERW�8"$#!BsP7TETW�IK�PSØ>P$xÏ�W�0Pm'!,2"$#W)34�-�/I(24�)Y(2#wk_@C)3<M6$-7"$1?4&K=uH)�<!-&#�B>-&,2-�)3-t'!,\"$#W)�4�:i@E1{D{<!(9%+<�4�@E 8-t@C:�)3<!-1�-�,2-�JC"$#W)~JC"$1�(2"$k!,2-�4~"$1�-8 �(94�4?(2#!X�(2#�"C)~,2-&"$4?)t@E#!-h6E-&"$1&K`uY"$,24?@w-}/>%�,2�!B>-�:i1�@$ Ñ)3<!-843"C �'!,9-8"$,2,�'!,2"$#W)34)3<N"�)5<!"SJ$-{%7"$'!(*)+"$,>@E1�'!1�@0B!�!%�)3(9@E#h<!@E�!1?4v@$1�#!@E#8'!1�@0B!�!%�)3(2@$#8<>@E�!1�4�-��0�!"$,N[&-�1�@!K�Í·(*)3<�¡]@Ek!kfnI�Y@E�!XE,2"$4@E1��z13"$#>4�,2@$Xs'!1�@0B!�!%�)3(9@E#¤:i�!#!%�)3(9@E#!4&x{@E�I)3'!�>)�(24�[�-&1�@s:i@$1�"$#W6£'>,\"$#W)34�D{<!-&1?-�@E#!-g@$:A)�<!-�(2#>'!�>)34G(24[&-�1�@!K|��(9#N"$,2,*6Ex�"C:§)�-&1�uYB!-�,2-�)3-G(9#!B!�!4�)31�6Wnf%&(9)b6a%�-&,9,24�D{(9)3<e,2-�4�4~)3<N"$#ÆPSU`D]@E1?F$-�1�4m:i1?@E Ö)3<!-G¡]-&#>4��!4l@$:��@E'>�!,\"C)�(2@E#;KM��<!-�1?-&4?�!,9)�(2#!XwkN"$,\"C#!%&-�Bs'N"$#!-�,]4�"$ �'>,2-G<!"$4m×WUIx �$RIP�'!,\"C#f)�4m(9#¤PSTERE�M"$#!B£P7TETW�IKw��<!(2443"$ 8'!,9-]%&@SJ$-&1�4�"C'!'!1�@7/I(2 �"C)�-&,96t��×OÝ@$:q"7JE-&1�"$XE-�"C#!#f�N"$,> �"$#f�>: "$%�)3�!1?(2#!X�-& 8'!,2@S60 8-&#W)�@SJE-�1�)3<>-H'_-�1�(9@IB:i1�@E PSTERE�h)3@MPSTETW�IKYcz"C1�XE-t'!,\"$#W)�4Y"$1?-p@SJE-&1?1�-�'!1�-�4�-&#W)�-&B^(9#M)3<>-mD]@$1�F$-�1���ZN1� � G"C)�%+<!-&BM43"$ 8'!,2-CKA�N@E1-�/>"$ 8'!,2-Cx0)�<!-Y"7J$-&13"CXE-=#f�! pkq-&15@$:�<>@E�!1�4vD]@$1�F$-�B`kW6�"$,9,N'!,\"C#f)�45(9#wP7TERW�~(94�P7UWÎIKÏ�Ixf,2-&4?45)�<N"$#G<!"$,9:_)3<N"$#)3<!-Y"SJ$-&1�"$XE-Y#f�! pkq-&1]@$:�<!@E�>1�4]D5@E1�FC-&B�kW6G'>,\"$#W)345(2#8)3<!-Y �"C)�%+<!-&B�4�"$ 8'!,2-CK�¸I(2 8(2,2"$1�,*6ExE@$�>)3'!�I)7xIJC"$,9�!-"$B!B!-�B�x>JC"$,9�!-Y@$:�%&"$'!(9)3"$,_"$#!B�D]"$XE-&4{"C1�-Y,9@�D5-&1](2#G)�<!-Y'q@E'!�!,2"C)3(9@E#�)�<N"$#`(2#G m6G4�"$ 8'!,2-CK���<!-�"7JE-�13"$XE-@E�>)�'!�>)7x�"$B!B>-&B�JC"$,9�!-$x�%&"$'!(9)3"$,�"$#>B�D]"$XE-&4~(2#�)�<!-�'q@E'!�>,\"C)�(2@E#�@$:]'!,\"C#f)�4�(2#ÃPSTERW�`"$1?-$xz1�-�4�'q-&%�)�(9J$-&,96qÓTEU>PSRIÕf�ERW�$R>Õf�$�E�EØ>ÕNP��0K �IK���@SD5-�JE-�1&xf)3<!-�#>@E#h1�-&'>1�-&4?-&#W)+"�)3(9J$-&#!-�4�45@$:_)�<!-HD5@E1�FC-&1���ZN1� ø G"C)�%+<!-&Bh4�"$ �'>,2-B!@0-&4{#!@$)�4�-�-& è)�@8k>(\"$4H)�<!-�-&4?)�(2 �"C)3-�4�(2#|"$#W6`4?(2XE#!(*ZN%7"C#f)�D]"76�O 4?-&-m¸I-&%�)3(2@$#MÎ0KÏØWV}K

ub#�)3<!-�@E1?6$x�)3<!-�Í^@E1?F$-�1l��4?)+"Ck!,2(94�<! 8-&#W)p¡]<N"$13"C%�)3-�1�(94?)3(9%&4m�A"C)+"$k!"$4�-gOiÍÐ�v¡H��V~%�@E�!,2B^<N"7JE-�kq-&-�#�!4�-�B¤(9#!4?)�-7"$B�@$:�)3<!-`4�"$ �'>,2-`�!4?-&B¤<>-&1�-CKrÍÐ�5¡H�j G"�)3%+<!-�4G¡]-�#!4��>4G@$:YLM"$#f�>: "$%�)3�!1?-&1?48)�@^¡]-�#!4��>4@$:��z@E'!�!,2"C)3(9@E#Ã�!4�(9#!Xs"e �@E1?-�'!1�-�%&(24?-g"$,9XE@E1?(9)3<> )3<!"C)81�-&�f�!(91�-�4G-&,9(2 8(2#N"�)3(2#>XM:i1�@E )�<!-|43"$ 8'!,2-|"$,9,@Ek!4?-&1?JC"C)�(2@E#>4�,9@I%&"C)3-�BÆ(9#¤%&-�,2,94hD{(*)3<� �@$1�-�)3<N"$#Æ@E#!-|'!,\"C#f)MO ��-&,9,2-�1�4?)�-&(9#Æ-�)�"$,yK�PSTETETEV�K£��<!-w G"C(2#

˪ÛJÒ�ÑOÒqøHÏOÒ5�?����±(ãpÞ±ãO×¾âZÔÂÕ'Í�ÌAÔJØÚà1ÔJàOÒv������±@Ó`Õ�éOÏHÑOÌ�ÛÂÎßÒ�â�ô®õ4àOÒFçZÕ�éOÏ8ÔÆä ª ÛJÕ�éHï�ý��8éOÎßæ�ÌAáßÒ�ÏHØ�ä�øHáßÒ�â!ÌAÛJÒ)éHâÂÒ�ѽÔÂÕ'ÎßÑpÒ�Ï8ÔÂÎÐó}äëZò¾Þ�×�â;ÔÂà`Ì�Ô¾ØqÕ�Ï8ÔJÌAÎßÏuÔÂàOÒ(Ì��RÒñØsÔJÒ�Ñ°ØqÕ�éOÏ8ÔÂÎßÒ�â4ÎßÏ�ÔÂàOÒ�������±1çZÒ�ÏHâÂéHâ�ôeË¢ó­ÔJàOÒ(ØqÕ�éOÏ8ÔÂÎßÒ�â;ÎßÏ��8éOÒ�â»ÔÂÎßÕ�Ï�ØqÕ�Í�ïOÛÂÎÅâÂÒ@ͯÕ�ÛÂÒ ÔJàHÌAÏàHÌ�á÷ó)Õ�ó;ÔÂàOÒuëeò�Þ�×¾â'ï`Õ�ïOéOáÅÌ�ÔJÎÐÕ�ÏQݤÌAáßáZÛJÒ�âÂï`Õ�ÏHÑpÒ�Ï�ÔÚâ(ÌAÛJÒ�Ì�âÂâÂÎÐÜ�ÏOÒ�Ñ�ÔJÕ°ÔÂàHÒ�ïRÒ�ÛÂÔÂÎßÏOÒ�Ï8Ô½ãpÞ±ãp×�ôbË¢ó)Í�Õ�ÛJÒ1ÔJàHÌAÏ���±eÒÉÕAó¾ÌãpÞ�ãp×¾â��?����± ï`Õ�ïOéOáÅÌ�ÔJÎÐÕ�Ï1ÎßâZÌ#��Ò�ØsÔJÒ�Ñ�Ózä(ÔJàOÒ¾ÓRÕ�éHÏHÑOÌAÛJä'ØÚà`ÌAÏOÜ�Ò�âªÌ�ÏHѯÎßâeéOÏOÛJÒ�ØqÕ�æ�Ò�ÛÚÌAÓOáßÒ!ó}ÛÂÕ�Í�ÔJàOÒFçZÕ�éOÏ8ÔÆä'ý��8éOÎßæ�ÌAáßÒ�ÏHØ�äøHáßÒ�â�ÝRË4ÑOÛÂÕ�ï�ÔÂàOÒ¯ØqÎÐÔÆä�ó}ÛJÕ�Í ÔÂàOÒ'ÌAÏHÌ�áÐäpâÂÎßâ�ô;Ö�Ì�ä8ÔÂÕ�Ï�ÌAÏHÑ�ãpïOÛÂÎßÏOÜ�øHÒ�áÅÑwÝ�7�àHÎÐÕ�Ì�ÛÂÒFÔJàOÒ�Õ�ÏOáßäuâÂéHØÚà�ØqÎÐÔÂÎßÒ�â�ôz���&��ãpÞ±ãp×�â�Ì�ÛÂÒÎÅÑpÒ�Ï8ÔJÎ÷øHÒñÑuÎÐÏp�?����±¯ÌAÏHÑt�?����±Hô­õ4àOÒ(Ø�Õ�Í�ïOépÔJÒ�Û)Ø�ÕzÑOÒFó}Õ�Û4ÔÂàHÎßâ)Ì�âÂâÂÎßÜ�ÏOÍ�Ò�Ï8Ô4Îßâ¾Ì�æ�Ì�ÎÐáÅÌAÓHáÐÒ Õ�ÏuÛÂÒ0�8éOÒ�â»Ô�ôÄ�® ×¾Ï�Ì�á÷ÔJÒ�ÛJÏHÌ�ÔJÎÐæ�Ò4öZÕ�éOáßѯàHÌ�æ�Ò4Ó`Ò�Ò�ϯÔÂÕ@éHâÂÒ)Ì�æ�Ò�ÛJÌ�Ü�Òñâ%Õ�ÓpÔJÌ�ÎÐÏOÒñÑ�ä�Ò�Ì�ÛÂáßä@ó}ÛJÕ�Í�ÔJàOÒ�çZéOÛJÛÂÒ�Ï8Ô¤ë®Õ�ïOéOáÅÌ�ÔJÎÐÕ�Ï�ãzéHÛÂæ�Ò�ä�ô ª ÎÐæ�Ò�ÏÔJàOÒ°â»Í1ÌAáßáßÒ�Û�âÂÌ�ͯïHáÐÒ�â»Îßî�ÒuÕAó¾ÔÂàOÒ±ç!ëZãwÝ­ÛJÒ�âÂéOáÐÔJâ'Õ�ÓpÔÚÌAÎßÏOÒ�Ñ�Ózä9ÎÐÏ8ÔÂÒ�ÛÂïRÕ�áÅÌ�ÔJÎÐÏHÜ9çZÒ�ÏHâ»é`â¯Ì�æ�Ò�ÛÚÌAÜ�Ò�âFÔJéOÛÂÏ�Õ�épÔ¯ÔÂÕ�ÓRÒuÍ�Õ�ÛÂÒïOÛJÒ�Ø�ÎßâÂÒ ÔÂàHÌ�Ï�ÛÂÒñâ»éOáÐÔJâ4Õ�ÓpÔJÌ�ÎÐÏHÒ�Ñ�ó}ÛÂÕ�ÍÇç!ëZã�Ì�æ�Ò�ÛJÌ�Ü�Òñâ�ôÄ�Ä õ4àOÒ�ÛÂÒ�Îßâ¯Ì°ö;ÎÅÑpÒ�æ�ÌAÛJÎÅÌ�ÔÂÎßÕ�Ï9ÎßÏ�Ø�Ò�áßá!âÂÎÐî�Ò�Ì�Ø�ÛÂÕ8âÂâ(ÎÐÏHÑOéHâÆÔJÛÂÎßÒ�â�ô±þHÕ�Û¯ÒqìOÌAÍ�ïOáßÒ�ݤë®ÒqÔJÛÂÕ�áÐÒ�éOÍÈê;ÒqøHÏHÎÐÏOÜ�«¦ãzËÂçr�����3­FÌAÏHÑýeÏOÜ�ÎßÏOÒ½ÌAÏ`Ñ�õbéOÛJÓOÎßÏOÒ�â{«�ãzËÂçe°�¬S�3­ àHÌ�æ�Ò¯ÔÆäzïOÎÅØ�Ì�áÐáßä�Õ�ÏHáÐä�Õ�ÏOÒ1ïOáÅÌAÏ8Ô(ïRÒ�Û�Ø�Ò�áßá¦Ý­ö;àOÎßáÐÒ½ëeáßÌ�âÆÔJÎßØ�ëeÛÂÕpÑpéHØqÔJâ{«�ãzËÂçe°�±��&­ ÌAÏHÑãpØ�ÎÐÒ�Ï8ÔÂÎÐø`ؽ˩ÏHâ»ÔÂÛJéOÍ�Ò�Ï8ÔÚâ�«¦ãpËÂçe°�����Ý>°�����­ à`Ì�æ�Ò�ÿuïOáÅÌAÏ8ÔÚâ(ïRÒ�Û'Ø�Ò�áßá¦ô��¾ÕAÔ'Ì�áÐáZÎÐÏ`ÑpéHâ»ÔÂÛJÎÐÒñâ�ÌAÛJÒ1ïOÛJÒ�âÂÒ�Ï8Ô�ÎßÏ5ÌAáßáZØ�Î÷ÔJÎÐÒñâ�ô�þHÕ�ÛÒ�ìpÌ�Í�ïOáÐÒ�ÝQ7;�½ØqÒeÌ�ÏHÑ(×¾Ø�ØqÕ�éOÏ8ÔÂÎßÏOÜ�Þ�Ì�ØÚàOÎßÏOÒ�â;«¦ãzËÂçm°&¬�ÿ�­�ïOáÅÌAÏ8ÔJâ­ÌAÛJÒªïOÛJÒ�âÂÒ�Ï8ÔbÎßÏ(Õ�ÏOáÐä����)ØqÎÐÔÂÎßÒ�â�Ý�ö;àOÎßáÐÒeÔÂàOÒ�ÛÂÒ!ÌAÛJÒeýªáßÒ�ØqÔÂÛJÎßØ�ÌAáÞ�Ì�ØÚàOÎßÏOÒ�ÛJä~«¦ãpËÂç�°�����ÝS°����pÝS°��I�HÝ�°��bÿpÝ7°����&­ªïOáÅÌAÏ8ÔÚâ;ÎÐÏm�?�Ïÿ'ÑpÎ)��Ò�ÛJÒ�Ï8Ô)ØqÎÐÔÂÎßÒ�â�ô

Page 36: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

1�-&"$4�@E#aD{<W6�u�B!@�#!@$)��!4?-hÍÐ�v¡H�²(24=)�<N"C)�(*)A(24A"7JC"$(9,\"$k!,9-m@E#>,96|:i@E1lPSTETW��"$#!BaB!@0-&4�#!@$)~"$,9,2@SDÒ:i@E1A",2@E#>XE(9)��!B!(2#!"$,;"C#N"$,9604?(24&K

Ò&Ø�×QÐ�Ûb÷ õ\Ý¡ç�Ý�Øié ×+ÑñÝ ïÇ×�â!×BÛÎ�ß�Ð]ÍBÐ ub#`@E1�B>-&1])�@h"$4�4?-&4H)3<>-Y�f�N"$,2(*)b68@$:�)3<!-Y �"C)�%+<`@$:�D]@$1�F$-�1�4�"$#!B'!,\"C#f)�4&x0u�<N"7JE-Y-�4?)�(2 �"C)3-�BG'!,2"$#W)�n0,9-�JE-�,NDH"$X$-=-&�f�N"�)3(2@$#!4&K�¥�,9)3<>@E�!XE<8)3<!-{:i@I%��!4]@C:�)3<!(945'!"$'_-�1](945#!@C)]@E#DH"CXE-&4�xI'!,2"$#W)�n0,9-�J$-&,>D]"$XE-{-&�f�N"�)3(2@$#!4�'!1�@SJ0(2B!-�"$#h(9#!B!(21?-&%�)�)3-&4�)v@$:_)�<!-{�f�N"$,2(*)b6p@$:q)3<>-� �"C)�%+<!(2#!X>K�u�:_)3<!- G"�)3%+<!(9#!X`(24Y%�@E1�1?-&%�)~"$#!Ba �-&"$4��>1�-& 8-&#W)�-�1�1�@$1A(24Y#!@C)Y)3@0@`,\"$1?XE-$x;@E#!-mD5@E�!,9Be-}/I'_-�%�)�DH"CXE-l-&�f�N"C)�(2@E#%&@0-�Ô8%&(9-&#W)34�)3@�kq-�%&,9@E4�-�)�@H)3<!-�@E#!-�4��!4��N"C,2,96�:i@E�!#>B~(9#Y)3<!-�D]"$XE-�-&�f�N"�)3(2@$#A,2(9)�-&1�"C)3�!1?-$K´³�ÿl��<!-�-&4�)3(9 G"C)�-&BDH"CXE-�-&�f�N"C)�(2@E#!4�"$1?-A4�<!@SD{#w(2#`)+"$k>,2-A¥mP$K��A"C)+"p@E#�D]"$XE-&4�x!:i1�@E ë)3<!-~¡]-�#!4��!4�@$:�LM"$#f�>: "$%�)3�!1?-&1�4�xq"$1�-'!,\"C#f)="7JE-�13"$XE-�4A@Ek>)3"$(2#!-�BMkW6|B!(9J0(9B!(2#!Xh)3<>-t)3@C)+"$,�D]"$XE-mk>(2,2,�kW6�)3<!-t#f�! pkq-&1=@C:�<!@E�!1?4=D5@E1�FC-&B�K=�A"C)+"@E#�D5@E1�FC-&1�4�"$1?-Y%&-�,2,;"SJ$-&1�"$XE-&4�:i1?@E Ç)�<!-�¡]-�#!4��!4{@$:��z@E'!�!,2"C)3(9@E#�K��N@E1]-�/>"$ 8'!,2-Cx>ÅE'q-&1?%&-&#W)3"$XE-Y:i-& �"$,9-&Å(24{)3<!-~:i13"$%�)3(9@E#w@C:�D]@$ �-�#g(2#|)3<!-~(2#!B>�!4?)�1?6w"$#!Bg%�(9)b6`)�@�D{<!(9%+<M)3<!-t'!,\"C#f)�kq-&,2@$#!XE4&K{��<!-t%&@0-�Ô8%&(9-&#W)34"$1�-�1�@E�>XE<!,96h4?(2 8(2,2"$1�)3@t)3<!-�@E#!-&4v:i@E�!#!BG(2#�)�<!-=,9(9)�-&13"�)3�!1?-�k!"$4�-�B`@E#G(9#!B!(9J0(9B!�N"$,N,9-�JE-�,_1?-&XE1?-&4?4�(2@$#!4�"$#!B)3<!-�@E#!-�4~:i@E�>#!Bs��-&,2,9-&1?4?)3-�(2#e-�)m"$,�KvOQPSTETETEV�xzkN"$4�-�B^@E#^"w'!,2"$#W)�n0,9-�J$-&,�1�-�XE1�-�4�4�(9@E#�K`�N@E1~-�/>"$ 8'!,9-$x�)3<!-%&@0-�Ô8%&(9-&#W)34�@E#|4�%+<!@0@E,9(2#!Xh"$1?-~U>KÏUEÙ$Rh"$#!BwU>KÏU$REØp:i@E1APSTETW�l"$#>B�PST$RW�m1�-�4�'q-&%�)�(9J$-&,96$K5��<>-&4�-t%&@0-�Ô8%&(9-&#W)34"$1�-�4?,2(2X$<f)�,96=4� �"$,2,9-&1Qí¶'!1�@$kN"$k!,*6�kq-&%&"$�!4?-]@$:I �-&"$4��>1�-& 8-&#W)�-&1?1�@E1bí·k!�>)z#!@C)�%�@E 8'!,2-�)3-&,*6YB!(*o;-�1�-�#f)�:i1?@E )3<!-�4?)3"$#!BN"$1?Bs-&4�)3(9 G"C)�-&4~@$:H)�<!-�'>1�(9JC"C)�-�1?-�)��!1�#^)�@M-�B!�!%7"�)3(2@$#^@Ek>)3"$(2#>-&B�:i1?@E ÖD5@E1�FC-&1���,2-�JE-&,5BN"C)3">K ³I'Í^@$ �-�#`"$#!B�k>,\"$%+Ff4�"$1?-='N"C(2B�,9-&4�4�x!"$#>B�@E,2B>-&1�D]@E1?F$-�1�4� 8@E1�-CK�u�%&@E#!%�,2�!B>-�)3<!"C)])�<!-Y �"C)3%+<!-�BGD5@E1�FC-&1��ZN1� µ43"$ 8'!,2-A%�@E#W)+"$(9#!4{4�@E 8-A 8-7"$4?�!1�-� �-�#f)�-�1�1�@$1&xNk!�>){%&"$#|1�@E�!X$<!,96G1�-&'>1�@0B!�!%&-~4?)3"$#!BN"C1�B|(2#!B!(*J0(2B!�N"C,,2-�JE-&,�D]"$XE-�-&�f�N"�)3(2@$#|1?-&4?�!,9)�4&K

Ä � í¾Ò�áßáÐÒ�ÛJâ»ÔÂÒ�ÎÐÏuÒqÔ)ÌAá�ôf«i��������­Zâ»àOÕ�ö0ÔÂàHÌAÔ4ïHáßÌ�Ï�Ô"�8áßÒ�æ�Ò�á�ö!Ì�Ü�Ò Ò��8éHÌAÔÂÎßÕ�ÏHâ!ÛJÒ�ïOÛJÒ�âÂÒ�Ï8Ô!ÔÂàOÒ(Ì�Ü�Ü�ÛJÒ�Ü8Ì�ÔJÎÐÕ�Ï1ÕAóbÎßÏHÑpÎßæzÎßÑOéHÌAá)�8áßÒ�æ�Ò�áö4ÌAÜ�ÒuÒ0�8éHÌ�ÔJÎÐÕ�ÏHâ�Õ�æ�Ò�Û¯ö!Õ�ÛJÙ�Ò�ÛJâ'Ò�Í�ïOáßÕ�ä�ÒñÑ�ÎßÏ0Ì�ïOáÅÌAÏ8Ô�ÌAÏHÑWàOÒ�ÏHØqÒ�âÂàOÕ�éOáßÑ�ïOÛJÕ�æzÎßÑpÒ°Ø�Õ8Ò��½ØqÎßÒ�Ï8ÔJâ½âÂÎßͯÎßáÅÌAÛ�ÔÂÕDÔJàOÒ°Õ�ÏHÒ�âÕ�ÓpÔJÌ�ÎÐÏOÒñÑ�ó}ÛÂÕ�Í�ÔÂàOÒ�ÎÐÛ;ÎßÏHÑpÎßæzÎßÑOéHÌAá)�8áßÒ�æ�Ò�áQØqÕ�éOÏ8ÔÂÒ�ÛÂïHÌ�Û»ÔÚâ�ôÄy, 7�ÏOÒ@ÑpÎ���Ò�ÛJÒ�ÏHØ�Ò@Îßâ!ÔJàHÌ�Ô;ÔJàOÒ��?������Ò�â»ÔÂÎßÍ�ÌAÔÂÒñâ;ÌAÛJÒ é`â»éHÌ�áÐáßä1ó}Õ�éOÏHÑ�ÔÂÕ�ÓRÒ@áßÌ�ÛÂÜ�Ò�Û!ÔÂàHÌ�Ï�ÔJàOÒ��?������Õ�ÏOÒñâ�ô

Page 37: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��"$k!,9-lPEÓv¸I�! 8 G"C1?6�¸f)+"C)�(24?)�(2%�4PST$RW� PSTETW�

L|-7"$# ¸0)�B�Kv�Y-�JqK Lw-&"$# ¸0)3B�Kv�Y-�J_KOQP�V Oy�EV Oy�EV O ×fV

�v"$,2�>-A@$:��Y�>)�'!�>)mO§/�PSUEUEUWV PSTET$×$×!KÏU PSØE�WÎ$TE�IK Î �CUETE�ER>KÏÙ P�Ù�×WUERWÙIKÏÎ¥=B!B>-&B��v"C,2�!-8O\/aPSUEUEUEV REU>P7T>K9P ÎEÎ$�EUWÙ0KÏR TC×!P��IKÏÎ$� ØETEÎ$ØEØ>K�T>P¡H"$'!(*)+"$,�O\/aPSUEU$UWV Ù$U$×W�IK9P ØW�$UEUE�IK�× R$UEUWÙIK*PS� ØW�$Î$UW�IKÏÎ$R��@E�>1�4�Í^@$1�F$-�B �E�C�>K � ×W�W�IK´× �E�E�IKÏÙ ×W�WÎIKÏÙ��@E�>1�4�D]@$1�F$-�BMkW6w¡]@E,9,2-&X$-���1�"$B!�N"�)3-&4 �ERIKÏT �EUET>KÏÎ �ET>K�U �>PSU>K�R��@E�>1�4�D]@$1�F$-�BMkW6`Í�@E1�FC-&1�4{D{(9)�<w¸I@E 8-~¡]@E,2,9-&XE- ×W�IK Î �E�ER>K�Ø ØWÙIKÏÙ �E�E�>KÏÙ��@E�>1�4�D]@$1�F$-�BMkW6|��(9XE<w¸I%+<!@0@E,z�A13"$B!�!"C)3-�4 TEUIK�× �$×f�IK´× Ù$�>KÏÙ �>PSU>K�U��@E�>1�4�D]@$1�F$-�BMkW6|��(9XE<w¸I%+<!@0@E,��Y1�@$'M�Y�>)�4 Î$UIK � �C×WT>K´× ×f�IK´× PS�EØ>K�R��(��z-&%+< U>K�UETET U>KÏ�$TER U>K�UETET U>K �CTER¥�J$-&13"CXE-m��@E�!1?,96GÍ^"$XE- PS�IK ÎC× ÎIKÏÎ$U PS�>KÏÙ$� ÎIK�×EU�]-&,9@E#!Xl)3@�Lw�>,9)3(��QÈ�#!(9)�4���(21? U>KÏ�EÎ U>K´×W� U>KÏ�$T U>K�×WΡ]@E,2,9-&XE-~¸0<N"$1�-t�Y�>)�4�(2B>-Aub#!B!�!4�)31?6 U>K*P7×fÙ U>K�U$×f� U>K*PST>P U>KÏU$Ø>P���! mk_-�1�@C:���,\"C#f)�4 ×WU>xÏ�$R>P ×WU>xÏ�$R>PØ�Ù�Ã=ÚF�µÛ%¡5�O{Qr�tqnz�q�D�8np�}~QrAo(nz�qr�|}{�ÜIÝYÝYÞ±�w�O�}�}nz��o��

Page 38: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��"Ck!,2-~�IÓv��4?)�(2 �"C)3-�4�@$:���1?@IB>�!%�)�(2@E#|�N�!#!%�)3(2@$#!4&Óv¡]1?@E4�4Q��¸I-�%�)3(9@E#N"$,z¸0'_-�%&(9Z!%7"C)�(2@E#¡]@Ek!kI�b�Y@E�!XE,2"$4 �z13"C#!4�,9@EXPSTETE� PSTERW� PSTETE� PSTERW�O�PSV Oy�EV Oy�EV Oi×fV

¡]@E,9,2-�XE-~¸I<N"$1?-�(2#w�=)3<!-�1�ub#!B!�!4�)31�(9-&4 U>K�R$×WØ U>K�R>P�� U>K�RE�$× U>K�REUWÙO U>K*PSUW�EV OyU>K*PEPS�EV O U>K*PSUWÙEV OyU>K*PS�E�EV

,9#wÈ�#!4�Ff(9,2,2-�B|cz"Ck_@E1 U>K´×fÙ$U U>K��E�E� U>K�ØEUEØ U>K��E�W�O U>K�U>P7×fV OyU>K�U>P��$V O U>K�U$×WUWV OyU>K�UWÎ$UEV

,9#M¸0F0(9,2,9-&B�c�"$kq@E1 U>K��ERW� U>K*PSTEØ U>K´×WØWÎ U>KÏ�$ØWÎO U>K�U>P�ÎEV OyU>K�U>PSUEV O U>K�UE�ETWV OyU>K�UEØEUEV

,9#M¡H"C'!(9)3"$, U>K*P�Ù$R U>K´×fÙ$Ø U>KÏÎ$U>P U>K�ØWÎEÙO U>K�UEU$×fV OyU>K�U>PSUEV O U>K�UWÎ$UWV OyU>K�UWÎEÙ$V

,9#wÈ�#!4�Ff(9,2,2-�B|cz"Ck_@E1�4?�.K U>K�UETER U>K�UETEØO U>K�U>PEP�V OyU>K�U>PSUEV

,9#M¸0F0(9,2,9-&B�c�"$kq@E1�4��.K U>K�UEØER U>K�UWÎ$�O U>K�U>PEP�V OyU>K�U>P��$V

,9#M¡H"C'!(9)3"$,�4��.K U>K�U$×WR U>K�UW�C×O U>K�UEUW�EV OyU>K�UEUW�$V

,9#wÈ�#!4�Ff(9,2,2-�B�¹£,2#w¸IFf(2,9,2-&B �QUIK9PEP$P �bU>K�UW�E�O U>K�U>PSRWV OyU>K�U>P7×WV

,9#wÈ�#!4�Ff(9,2,2-�B�¹£,2#w¡H"$'!(*)+"$, �QUIKÏUWÙ$Î �bU>K�UETWÎO U>K�U>PSUWV OyU>K�U>PSØEV

,9#M¸0F0(9,2,9-&Bù£,2#w¡H"$'>(9)+"C, �QUIKÏUW�CR �bU>K�U$×fÙO U>K�U>PEP�V OyU>K�U>PSØEV

Lw�>,9)3(��QÈ�#!(9) U>K*P�Î$U U>K�UWÙ$� U>K*P��E� U>K�UEØETO U>K�UEUERWV OyU>K�U>PEPSV O U>K�U>P��EV OyU>K�U>P��$V

ub#!B>�!4?)�1?6w��o;-�%�)34 �v-�4 �v-&4 �v-�4 �v-&4��KN4��.K U>K�RET UIKÏRET U>K�T>P UIKÏTEU

Ø'�ptsrAoKÛ½�Rtqnp{Q�Qnz���Wr��q���p��o�np�eßs~%ostsrA�W�¦�p�1���}~Qoqtsr���|}{wy�|}{��bnz�qrA{HtqvQrAoq|}o���Ú¾np��v>���O�}~Qx�{�|}o¯nDosr��%nz��nztsr��qr�yp��rAoqoq|��O{¤�¥¯�}�;�}nz�®�p�½|}{w�b~wtqo�nz�qr±x°rAnpoq~Q�qrA�0|}{>{R~Qx��­r��1�p�Fvw�O~w��o����p�q�prA�ª��mJ{%�Q~Qosts�q��r�¬­rA��tqo�nz�qr±�Q~%x�x�|�rAo¯���p�Àà�Ä»�Q|�yO|}t|}{%�Q~Qosts��|}rAo��/Ø$á�âHãHÞYä�Üz�(�Rr�r1tsr�«�t����p���wr�tqnp|}��o��

Page 39: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

åçæèéëêìçíîçïðñçòæð êïóô õëöó÷ùøúðñ óûü øûúðñ óûï íý óûþñ ð ø÷ ñ ûæéÿ��êúñ� úæðñ óû

� óèè��� ó øþé æï

å öæûïé óþ

� �

� ì� �

� �

� �

� �

� �

� ��

� óééëêþêÿ � æ öêñ û� ð� ê ö� û÷ùøïð öñ êï�����ì� ��������ì�������

�����

��� �

������

��� �������

��� ��

� �����ì� � �� �� ��� � ������� ������� ����� � ������� ����� ����� �� ������

é û� ûï� ñééëê÷ ý æè ó ö

�����

� ���

�����

������

�����������

�����������

� �����ì� � ���� ������� ������

� ������� ������ ����� � �����

é ûÿ � ñéé ê÷ ý æè ó ö

����� � �

�����

����

����������

��� �

�����

� ������� � ����� ������ ������

� ������ ������� ������ ������

é û� æ �ñð æé

������

� ����������

������

���������������

���

� ������� � ����� ������� ������

� ������� ������� ������� ������

é û� ûï� ñééëê÷ ý æè ó öï � �

������

������

������

������

� ������ ������� ������ ������

é ûÿ � ñéé ê÷ ý æè ó öï � �

�������� ���������

�����

� �����ì� ������� �����ì� ������

é û� æ �ñð æé ï� �

����ì�����ì ����ì�����ì�

� �����ì� ������ �����ì� �����

é û� ûï� ñééëê÷ �éûÿ �ñééëê÷

�����������������������ì

� ������ ������� ������� ������

é û� ûï� ñééëê÷ �éû� æ� �

������ ��� ��ì������� ������ì�

� ������� ������ �����ì� �����ì

é ûÿ � ñéé ê÷ �éû� æ� �

������� ��� ��������������

� ������ ������ ������ �����

� �ï� �

�����

� ��

����

� ���

�����

� ��

�����

�����

�����

�����

î ïð æèé ñ ï�òêûðî� êúð ï

� êï

� êï

� êï

� êï

� êï

� êï

� êï

� êï

� êï

� êï

� û÷ ��� êæ öî� êúð ï

� êï

� êï

ÿ ð æð ê�� êæ öî� êúð ï

� êï

� êï

� û÷ ��ÿ ðæð ê�� êæ ö

� êï

� êï

� êï

� êï

å êú�ûóé óþ �� æ öñ êïè ��û÷ �

� êï

� êï

! "#$&%$ ' ()* (+*-,++.+/(* 021/' ,*3 .+45 1/' ,+6 )76 )8(+,)'9 ,/6 /;:"9 ,,<1('6. ),/'62=(' ,* 6 /,<1('6. )> :? 555 (@ . +6 )81' /(+, =,(/ 1+,* 6 ))1=@ , +

.39 . 1+/A. +B ,* :# (494.5 1=)6 /(/, 8(+(' ,+,7 +,//6. ) :"9 , +,(+,> CEDFGH 85 ()' / D.@ /,+ I,* 6)HJGF ()* HJJF :$ ,,' ,K'3. +* ,' (65 / :

Page 40: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

��"Ck!,2-A×!Ó���<!-~��o_-&%�)�@$:���<f604?(2%7"C,z¡H"$'!(9)3"$,��Y�>)�4�(2B>-�)�<!-~��,\"$#W){@E#|��,\"$#W)���1�@0B!�!%�)3(9J0(*)b6¡]1?@E4�4Q��¸I-�%�)�(2@E# ��"$#>-&,PST$RW� PSTETW�OQP�V O��EV O �WV O ×fV O�Î$V

Lw@0B!-&,�PEÓ¡]@I-�oa@E#�,2#�¥�J$-&1�"$XE-m¡H"$'!(9)3"$,��Y�>)�4�(2B>-���,2"$#W) U>K��$×WT �QU>K*P�Î$U U>K�U>P�� UIKÏUEUEÙ U>K�UEUWÙ

OyU>K�UEØWÙEV OyUIKÏUEØEÎEV OyU>K�U>P�ÙEV OyUIKÏU>PSÙEV O U>K�U>PSRWV

Lw@0B!-&,z�IÓ¡]@I-�oa@E#�,2#�¥�J$-&1�"$XE-m¡H"$'!(9)3"$,��z-&1�Í^@$1�F$-�1��A�I)34�(9B!-~��,\"$#W) PEK�RWÙIP �QU>KÏÙE�C× �bU>KÏU$UWÎ �QU>K�UEUEØ �QUIKÏUEUC×

OyU>K�ØEØ>P�V OyUIK�×WUC×fV OyU>K�UW�IP�V OyUIKÏUW�0P�V O U>K�UW�E�EV

��4?)+"Ck!,2(94�<! 8-&#W)���o;-�%�)�4 ��@ ��@ �v-�4 �v-&4 �v-�4¸0)+"�)3-!¹��v-7"C1���o_-&%�)34 ��@ ��@ ��@ �v-&4 ��@ub#!B!�!4�)31�6�¹��v-7"C1Y��o;-�%�)�4 ��@ ��@ ��@ ��@ �v-�4

Ø�Ù�Ã=ÚF�µÛ%�Rtqnp{Q�Qnz����r��q���p��o@np�eßq~QostsrA���¦�p�(����~Qostsr���|}{Qyu|}{��%nz��rA{HtqvwrAo�|}o��:Ú¾np��v9rA{`ts�q��|}oF���q�OxÈn°osr��%nz��nztsr1�qr�yp�qrAoÚÄoq|}�O{¤�@Ã(vwr�rA�R~Qnztq|��O{�rAostq|}x�nztsrA��|}o(rA�`~Qnztq|}�O{�âw�­��vwr��qr�v`~Qx±np{���nz�%|�tqnp� LNMPOQOSRUTVOXWSM&WSRUWXY[Z]\^M&WS_a`cbdY[`�OSRUeSYgf�hi _kjlOSM�mn`�oEmn` i M&WS`�oqp:ÚsrkWXetM&Y[OuM�rvetfw\ ÜQ`xeSYyWS_UYzm{fkYn|cmnM&Y[r}WSO~f�rcWS_UY^o�f��gf�h�`w��Ynet`x��Y i _kj�OSMPmn`�oEmn` i M&WS`�oVf�RUWSOSMPZUYQWS_UYi oP`�r}W�M�r]`�mnM&W;j�p�ÚsrkWXetM&Y[O�M�r�etfw\�Þ��E`xetY�WS_UY�m{f�Yn|�mnM&Y[rkWSO�f�r]WS_�Y�o&f��df�h i Yne�\uf�eS��Yney`[��Ynet`x��Y i _kj�OtM�mn`�o�mn` i M&WS`�of�RUWSOtM�ZUY�WS_UY i o�`�rkW�M�r�WS_UYgmnM�W;j�p��^o�o�bvf�ZUY[oPO�m{f�r}WXetf�o�h�f�e^mn` i M&WS`�o�M�r]WS_UY i o�`�r}Wn��`�rEZa_Uf�RUe�O�\uf�eS��Y[Z�T�j�OS��M�oPo&Y[Z`�r�Z�R�r�OX�lM�o�o�Y[Zc\~f�eS��YnetOyM�r]WS_�Y i o�`�rkWnp���_UYneSY�`xetY©âHãl� ÞYä�Ü i o�`�rkWSOn��f�TEOSYneS��Y[ZaM�r�ÜIÝYäYÞ�`�rEZkÜIÝYÝYÞ�p^��YnYgWXY{��W^h�f�eZUYnWS`�MPo�Onp

Page 41: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�~�k�������E ¡��¢��¤£V¥§¦�����¨�©l�«ª­¬�®¯�±°±²³¨�´cµy¨l�����«¶���£V¢���ª��·¦�¸¹�k����º±»S¼½¦�¶l¦�²a¾X¸�¿�À§Á�²{ª�¦��±Á¨l¸ÄÃ�ª�¨V¿§À�°±²Å¦�©E¦�²XÆǦ�¸ÈÉ��¸�À§´;��°w²{À�ª�¦�¸�¶§Ê���Ƭ�°±¨l¸�¨lËa¦�°v¼½¦�Á�²{��¸�°«�½´Ìª�¨lËÍÈÉ�k¸EÀV´;��°±²ÅÀ�ªÅ¦�¸�¶

µy¨E�±Îa°«¦��«¸U²�¨l¸ ¾X¸�¥�ÀV²{Á�¦�¸ÏÈÉ��¸�À§´SÐ ¼½¦�Át²n��¸�°±�µy¨l�����«¶l��£V¢���ªÅ� ÑÓÒ^¦�����¦�¨l¸§Áy¨�´~¼½¨l������ªÅÁ{Ô Ñ;Õg��¸§Ö§Ô

¦�¸É£E¥×�±°«¦�Ø��«¿³¾X¸�¿�À�Át²{ª�ÆÈÉ��¸�À§´;��°w²{À�ª�¦�¸�¶ Ù§Ð2ÚlÙUÛ ÚkÜ�º º

Ñtº�ÝlÛlÔ�uªÅ��¸�Á�¥×¨lªt²n�k²Å¦�¨l¸¯Ê�µy¨lËaË�À�¸�¦�°x�k²Å¦�¨l¸ÞÊVß�²Å¦���¦�²{¦��«Á Ù§Ð-ÜUÚlÚ º�ÛlÛ Û

Ñ;Ù§ÐàÛVº�áUÔ�uªÅ��¿�� Ù§Ðàâ�ÙU� º�º�Ý á

Ñ;Ù§Ð2áláU�lÔ£V�«ªt©E¦�°«�±Á Ù§ÐàÛVº�á º�º�Û Ü

Ñ;Ù§ÐàÛ�Ú�Ü�ÔÈϦ�¸§¦�¸�¶ »SÙVÐàÙlÙkÜ Ýlá �

Ñ;Ù§Ð2Ù�Ü�ÛlÔã~¦�¸���¸�°«� Ù§Ð2Ù�ÜUÚ Û�Ý ä

Ñ;Ù§ÐPº��kÜ�Ôµy¨l¸�Át²{ªÅÀ§°±²{¦�¨l¸ Ù§ÐàÛlâ�á ºxÜ â

Ñ;Ù§Ð2álálÝUÔ

Ø�Ùz�=Ú��µÛ��lWS`�r�Z�`xetZ­YneSeSf�e�Oy`�ZEßXR�OSWXY[Zåh�f�e�mno�R�OSWXYnetM�rU��M�r i `xeSY[rkWS_UY[OSM�Onpg��_UYæY[çkR�`xWSM�f�råY[OXWSM�bv`xWXY[ZÂM�OyY[ç�R�`xWSM&f�rè pÔÚur}WXetM�Y[O]M�rém{f�o�R�bvr ÜÂ`xeSYÂWS_�Yåê ( m{f�Yn|�mnM&Y[rkWSOaMPrëY[ç�R�`xWSM&f�r è �y\^_UYneSYíìéM�r�ZUY{�lY[OiÜÅî;Z�M&��M&WïMPr�Z�R�OXWXe�M&Y[Onp��_�YgbdflZUY[o¯m{f�r}WXeSf�oPOQh�f�eymn` i M&WS`�oq��_Uf�RUetO^\uf�et��Y[Z�T�jïOX�lM�o�o&Y[Za`�r�Z�REr�OX�lM�o�o&Y[Zð\~f�eS��YnetOn��Y[OXWS`xTEoPM�OS_�bdY[rkW�Y{ñ�Y[m{WSOn�M�rEZ�R�OXWXeSjÞòój�Y[`xes`�rEZvOXWS`xWXY�òÏj�Y[`xetOsY{ñ�Y[m{WSOnp~ô�f�o�R�bvr¿Þ�eSY i f�eSWSOóWS_UY��x`�o�RUYQf�h�MPr i RUWSOÞh�eSf�b¹Y[`�m�_cMPr�Z�R�OXWXetjgR�OXY[ZM�rÏbv`�r�RUh�`�m{WSR�etM�rU�Upï��_�Y��x`�o�RUYvf�hQMPr i RUW�M�Og`�bvY[`�OSRUeSYcf�h�Y[m{f�rUf�bvM�mðZ�M�OXWS`�rEm{Y�pa��_UYneSYc`xeSY�âHãl� ÞYä�Ü i oP`�r}WSOn�f�TEOSYneS��Y[ZaM�r�ÜIÝYäYÞ�`�r�ZÍÜIÝYÝYÞ�p���YnY�WXY{�lW�h�f�e^ZUYnWS`�M�o�Onp

Page 42: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�~�k�����NäV ¡��¢��¤£V¥§¦�����¨�©l�«ª­¬�®¯�±°±²³¨�´cµy¨l�����«¶���£V¢���ª��·¦�¸¹�k���æÛ�»S¼½¦�¶l¦�²a¾X¸�¿�À§Á�²{ª�¦��±Á¨l¸ÄÃ�ª�¨V¿§À�°±²Å¦�©E¦�²XÆǦ�¸ÈÉ��¸�À§´;��°w²{À�ª�¦�¸�¶§Ê���Ƭ�°±¨l¸�¨lËa¦�°v¼½¦�Á�²{��¸�°«�½´Ìª�¨lËÍÈÉ�k¸EÀV´;��°±²ÅÀ�ªÅ¦�¸�¶

¼½¦�Át²n��¸�°±� µy¨E�±®�¨�¸Éµy¨������±¶l�v£V¢���ªÅ�Ñ;Õg��¸§Ö§Ô ¦�¸Ï£V¥×�±°«¦PØ��«¿Éõvª�¨lÀ�¥í¨�´u¾X¸�¿�À�Át²{ª�¦��«ÁÑtº�Ô ÑöÛlÔº±»S� Ù§Ð÷��âlâ

Ñ;Ù§Ð�ºxÚUâlÔä}»{º�Ù Ù§ÐàáVºxÜ

Ñ;Ù§Ð÷ÛkáláUÔºlº±»{º�� Ù§Ð2ܧº�á

Ñ;Ù§Ð�ºxÚUÛlÔº�ä}»SÛ�Ù Ù§Ð÷ÛkálÙ

Ñ;Ù§Ð�ºxÚläUÔÛVº±»SÛl� Ù§Ð÷ÛkáUÛ

Ñ;Ù§Ð�ºx䧺�ÔÛ�ä}»XálÙ Ù§ÐàÙlâ�ä

Ñ;Ù§Ð�º�º�ÝUÔá�ÙUø Ù§ÐàÙ�Úlá

Ñ;Ù§ÐàÙlâkÜ�Ô

Ø�Ùz�=Ú��µÛ���WS`�r�ZE`xetZdYneSeSf�e�Où`�ZeßSR�OXWXY[Zvh�f�eumnoPR�OXWXYnetM�r���M�r i `xeSY[rkWS_UY[OSM�O[pÞ�Q_UY�Y[ç�R�`xWSM&f�rvY[OSWSM�bv`xWXY[Z�MPOóY[çkRE`xWSM&f�r è pô~f�oPR�bvr�Ü~eSY i f�eSWSOÞWS_UY�et`�rU�gTE`�OXY[Z½f�r½Y[m{f�rUf�bvMPm�Z�M�OXWS`�r�m{Y�T�YnW;\~YnY[rdWS_UY�etY[o&Yn�«`�rkW:Þ±î;Z�M&��M&WóM�rEZ�R�OXWXetM�Y[OnprÚsrkWXetM&Y[OM�rÉm{f�o�R�b�r�Þ�`xeSYcWS_�Y�êlúïm{fkYn|cmnM&Y[r}WSO½M�rÏY[ç�R�`xWSM&f�r è �ó\Q_UYneSYc�³M�r�ZUY{�lY[OdÞ±î;Z�M&��M&WæM�r�Z�R�OSWXetM&Y[OnpïûUf�e½Y{�U`�b i o&Y��WS_UY]Y[rkWXeSj·M�rÉeSfw\ Ü]M�O½WS_UYïm{f�Yn|�mnM&Y[rkWdf�r�m{f�o�o&Yn��YïOS_E`xeSY]M�rÉWS_UY è Þ±î;Z�M&��M&WdM�rEZ�R�OXWXetM�Y[O�WS_�`xWv`xetYïmno&f�OXY[OXWdWXfWS_UY�eSY[o�Yn�«`�rkW i o�`�rkWnpí��_UY�bdf�Z�Y[oum{f�rkWXeSf�o�O½h�f�edmn` i M&WS`�oq�s_�f�RUetOg\uf�eS��Y[Z·T�j³OX�lM�o�o�Y[Z³`�r�Z·R�r�OS��M�oPo&Y[ZÂ\~f�eS��YnetOn�Y[OXWS`xTVo�M�OS_�bvY[r}W�Y{ñ�Y[m{WSOn�óM�r�Z�REOXWXeSjÞòój�Y[`xe�`�r�ZíOSWS`xWXY�òüj�Y[`xetOgY{ñ�Y[m{WSOnp]��_UYneSY�`xetY¿âHãl� ÞYä�Ü i o�`�rkWSOn��f�TEOSYneS��Y[Z³M�rÜIÝYäYÞ�`�r�ZÍÜIÝYÝYÞ�p���YnY�WXY{��W^h�f�e^ZUYnWS`�M�o�Onp

Page 43: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

åçæèéëê� íîçïðñçòæð êïóô ý øòæû� æ�ñ ð æéÿ��ñéé óþê öïXÿè �ýñ �å êú�ÿð æð øï

� �

� ì� �

� �

� óéé êþêÿ � æ öêñ û� ð� ê ö� û÷ øïð öñ êï

������ ��

����������

� ������� ������� ������� ������

� óéé êþêÿ � æ öêñ û� ð� ê ö� û÷ øïð öñ êï�ýñ«�å êú�÷ øòò� ���� ����� �� �� � ��� ����

� ������ ������ ������� ������� ���� �

î ïð æèé ñ ï�òêûðî� êúð ï

� êï

� êï

� êï

� êï

� êï

� û÷ ��� êæ öî� êúð ï

� êï

ÿ ð æð ê�� êæ öî� êúð ï

� êï

� û÷ ��ÿ ðæð ê�� êæ ö

� êï

� êï

� ñ ð ��� êæ öî� êúð ï

� êï

! "#$&%$ ' ()* (+* ,++.+/(* 0 1/' ,*3 .+45 1/' ,+6 )76)8(+,)'9 ,/6 /;:? 55 =.* ,5 /4. )'+.53 . +4( 86 ' (5 D9 . 1+/A. +B ,*@��/B 655 ,* ()* 1)/B655 ,* A. +B ,+/

()* ,/' (@5 6 /9 =,)' ,� ,4'/;:# (494.5 1=)6 /(/, 8(+(' ,+,7 +,//6 .) :"9 , +,(+,> CEDFGH 85 ()' / D.@ /,+ I,* 6)HJGF ()* HJJF :$ ,,' ,K'3. +* ,' (65 / :

Page 44: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�~�k������Ú§ �¬�Át²{¦�Ë��k²Å�«Áv¨�´���À�Ë­�k¸éµz��¥§¦�²n�k�Q£V¥�¦�����¨�©l�±ªÅÁ±Êu�UÆëã�ª{��°w²{¦�¨�¸¤¨k´��g¨�¸�VÃ�ªÅ¨E¿�À�°w²{¦�¨�¸�ë¨lªÅÖk�«ªÅÁc¦�¸²{¢���Ã�� �k¸�²g��¸§¿³�UƳã�ª{�k°±²{¦�¨l¸Â¨�´�µy¨l�����«¶l�½¬�¿§À�°x�k²Å�«¿�¡¨lª�Ö��±ªÅÁ�¦�¸Â²{¢���Ã�� �k¸�²

£V¥��«°«¦PØ�°x�}²{¦�¨�¸Nºl  ã�ªÅ��°±²Å¦�¨l¸Â¨�´ �g¨�¸�VÃ�ªÅ¨E¿�À�°w²{¦�¨�¸ µy¨E�±Îa°«¦��«¸U²�¨l¸ë¨lªÅÖk�«ªÅÁ�¦�¸å²Å¢���Ã�� ��¸U² µy¨l�����±¶l��£V¢���ª��v¦�¸

� ²{¢��±ª�¾X¸�¿�À�Át²{ªÅ¦��«ÁÑSº�Ô ÑÓÛlÔ

Ù��c»yálá�� Ù§Ð-Ü�â�ÚÑÓÙ§ÐPº�â�ÙUÔ

ákÜ����Välä�� Ù§Ð2ÚUâVºÑÓÙ§ÐPº�ÚU�lÔ

äUâ�����º�ÙlÙ�� ºlÐàâ�äläÑÓÙ§Ð-ÜUÚlÚUÔ

£V¥��«°«¦PØ�°x�}²{¦�¨�¸³ÛV  ã�ª{��°w²{¦�¨�¸Â¨�´�£EÖE¦������«¿�ë¨lªÅÖk�«ªÅÁ µy¨E�±Îa°«¦��«¸U²�¨l¸¦�¸å²Å¢���Ã�� ��¸U² µy¨l�����±¶l��£V¢���ª��v¦�¸

� ²{¢��±ª�¾X¸�¿�À�Át²{ªÅ¦��«ÁÑSº�Ô ÑÓÛlÔ

Ù��c»yálá�� Ù§Ð-ÜUÙUÛÑÓÙ§ÐàÛl��ÝUÔ

ákÜ����Välä�� Ù§Ð-Ü�âl�ÑÓÙ§ÐPºxÜ�ÛlÔ

äUâ�����º�ÙlÙ�� ÛVÐ2älÚUâÑÓÙ§ÐàÛ�᧺�Ô

���z�������¯��WS`�r�ZE`xetZÂYneSeSf�e�O�`�Z��SR�OXWXY[Z³h�f�eæmno�R�OXWXYnetMPrU�ïM�r i `xetY[r}WS_UY[OtM�Onpïô~f�o�R�bvr��cM�r�Z�MPmn`xWXY[O�WS_UY�h�et`�m{WSM&f�r³f�hrUf�r! i eSflZ�R�m{WSM&f�ra\uf�eS��Yne�OzWXfcWXf�WS`�oÞ\~f�eS��YnetOzM�r i o�`�rkW#" R iEi Yne i `�rUY[o%$�`�r�Z�WS_UYæh�et`�m{WSM�f�r�f�hum{f�o�o&Yn��Y½Y[Z�R�mn`xWXY[Z\~f�eS��YnetO½WXf­WXf�WS`�o�\uf�et��YnetOdM�r i o�`�r}W&" o&f±\uYne i `�rUY[o%$�p'�u`�mt_ i `�rUY[o~M�Oæ`�OSY i `xet`xWXY�eSYn��eSY[OSOtM&f�r�p�(uf�WS_·bdflZUY[o�Om{f�rkWXeSf�olh�f�eÞmn` i M&WS`�oq��_Uf�RUe�O×\~f�eS��Y[ZæT�jgOX�lM�o�o&Y[Zg`�r�Z½R�r�OX�lM�o�o�Y[Z�\uf�et��YnetOn��Y[OXWS`xTEoPM�OS_�bdY[rkW�Y{ñ�Y[m{WSOn��M�r�Z�R�OSWXeSj¯òùj�Y[`xe`�r�ZaOXWS`xWXY�ò¤j�Y[`xe�O�Y{ñ�Y[m{WSOnpu��_�YneSY�`xeSY�)+*l�-,/.!� i o�`�rkWSOn�Uf�TEOXYneS��Y[Z�M�r0�21/./,v`�rEZ3�21/1/,�p���YnY�WXY{��W�h�f�eQZUYnWS`�MPo�Onp

Page 45: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�u�������vݧ Q¬�Á�²{¦�Ë­�}²{�«Á�¨k´4��À�Ë­�k¸Éµz�k¥�¦�²{���ù£V¥�¦�����¨�©��«ª�Á«Ê��UƳÈÏÀ§��²{¦5�Vßg¸§¦�²�£E²{�k²{À§Á£V¦�¸�¶l���dßg¸�¦P² ȳÀ���²Å¦óßg¸�¦P²Ã�����¸U²{Á Ã�����¸U²{ÁÑtº�Ô ÑöÛlÔ

µy¨l�����«¶��v£V¢���ª��v¦�¸ � ²{¢��±ª�¾X¸§¿�À�Á�²ÅªÅ¦��«Á Ù§ÐàÝVº�Ù Ù§Ð2ܧº�ÝÑ;Ù§Ð�º�â�ÙUÔ Ñ;Ù§ÐàálÛVº�Ô

� á�Ù§Ê÷ÛEºlº ºxÙ§ÊàÙlâ�Ù

���z����������WS`�rEZ�`xetZ�YneSeSf�etOy`�Z��SR�OXWXY[Z�h�f�e�mno�R�OSWXYnetM�rU��MPr i `xeSY[rkWS_UY[OSMPOnp76�R�o&WSM8 kREr�M&WQOXWS`xWSREOyMPr�Z�M�mn`xWXY[O^\Q_UYnWS_UYne` i o�`�r}W½T�Y[o&f�rU��O½WXfí`39�etb \QM&WS_Nbdf�etY]WS_�`�r·f�rUYïY[OXWS`xTVo�M�OS_�bvY[r}Wnp:�s`�m�_NY[r}WXetjÉM�Od`³OXY i `xet`xWXY]eSYn��etY[OSOSM&f�r�p(~f�WS_ïbdflZUY[o�O�m{f�rkWXeSf�o�h�f�e�mn` i M&WS`�oÌ�l_�f�RUetO�\~f�eS��Y[Z]T�jcOX�lM�o�o&Y[Zð`�r�Z]R�rEOX��MPo�o&Y[Zv\~f�eS��YnetO[�UY[OXWS`xTEo�M�Ot_�bdY[rkWuY{ñ�Y[m{WSOn�M�rEZ�R�OXWXeSjÞòój�Y[`xe�`�r�ZaOXWS`xWXY�ò�j�Y[`xetOQY{ñ§Y[m{WSO[p���YnY�WXY{�lW�h�f�eQZUYnWS`�M�oPOnp

Page 46: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�~�k�����]º�ÙV �Õ�¨l�§À�Á�²Å¸��«Á�Á½µy¢��±°nÖ�Áµy¨E�±®�¨�¸Éµy¨������±¶l��£V¢��kªÅ�¦�¸ � ²{¢§�«ª�¾X¸�¿�À�Át²{ª�¦��«Á

Ñtº�ÔzÒz��ÁÅ�ð£V¥��«°±¦�Ø�°«�k²{¦�¨l¸ Ù§Ð÷â}ÜUáÑ;Ù§Ð�ºxÚláUÔ

ÑöÛ�Ô�£V¢�¦�¥§Ë��±¸�²ÅÁ Ù§ÐàÚ�äläÑ;Ù§Ð�ºxÝlÚUÔ

ÑÓálÔ;¡�±¦�¶l¢U²{�±¿Ïª��«¶lª��«Á�ÁŦ�¨�¸ Ù§Ðàä�Ý�ÜÑ;Ù§Ð÷ÛkÙUÛlÔ

Ñ;ÜUÔ�£VË­�k���¯¥§� ��¸U²{ÁcÑSº±»nº�Ù=<^¨lª�Ö��«ª�ÁnÔ Ù§Ðàä�ÝUÛÑ;Ù§Ð÷Û���ÝUÔ

Ñö��Ô�ÈÏ�«¿�¦�À�Ë ¥�����¸U²{ÁcÑtº�º±»t��Ù=<^¨lª�Ö��«ª�ÁnÔ Ù§ÐàÚVº�äÑ;Ù§Ð÷ÛkÙläUÔ

ÑÓälÔ?>s�kªÅ¶l�v¥�����¸U²{Á�Ñö�Eº�ø@<^¨lªÅÖk�«ª�ÁnÔ Ù§Ð÷â��l�Ñ;Ù§ÐàáVº�ÝUÔ

Ñöâ�Ôy��¢�ªÅ�±�c�±¿�À�°x�}²{¦�¨�¸Ï¶lª�¨lÀ�¥�Á Ù§Ðàä�Ú�ÜÑ;Ù§Ð�ºxÝU�lÔ

ÑÓÚlÔzã�¨�À�ª��«¿�À§°x�k²Å¦�¨l¸³¶lªÅ¨�À�¥�Á Ù§Ð÷��Û�áÑ;Ù§Ð÷ÛkÙUÛlÔ

ÑÓÝlÔzÃ�ª�¨V¿§À�°±²Å¦�¨l¸Þʧ¸�¨l¸³¥�ªÅ¨E¿�À�°w²{¦�¨�¸3<^¨lª�Ö��«ª�Á Ù§Ð2ÜlÚlÝÑ;Ù§Ð�º«ÜUáUÔ

ÑtºxÙUÔ�µy¨V�w®�¨l¸í� ����¨lªz¦�¸�¥�À§²ÅÁ�©��kª�Æí��°±ªÅ¨lÁ�Á�°«¦�²Å¦��±Á«Ê§²Å¦�Ëa� Ù§Ð÷�kÙ§ºÑ;Ù§Ð÷ÛkÙUÛlÔ

Ñtº�º�Ô�µy¦�²XÆÂ¥�¨l¥�À§� �k²Å¦�¨l¸ Ù§Ð÷â}Ü�ÛÑ;Ù§Ð�ºxÚláUÔ

Ñtº�ÛlÔ�µy¦�²XÆÂ¥�¨l¥ÞÐQø ¨�²{¢��±ª�°«¦P²XÆ°n¢���ªÅ��°±²Å�«ªÅ¦�Á�²Å¦�°«Á Ù§Ð÷âkÙláÑ;Ù§Ð�ºxÚlÚUÔ

���z�������V��WS`�r�Z�`xe�Z�YneSeSf�etO�`�ZA�XR�OSWXY[Z]h�f�e^mno�R�OXWXYnetMPrU�dM�r i `xeSY[rkWS_UY[OSM�O[pB�u`�mt_aY[r}WXeSj]M�OQ`dOXY i `xet`xWXYgeSYn��eSY[OSOSM�f�r�p"C�D$���_UY�TE`�OXY�mn`�OSYgM�O�h�eSf�b �¯`xTEo&YFE��Em{f�oPR�bvr0�xp"G,+$���_UY�ZUY i Y[r�ZUY[rkW��«`xe�M�`xTEo&Y�M�O��x`�o�RUYzf�hóOS_�M i bdY[rkWSOnp"GE+$IHÂY[M&��_}WSO^`xeSY�TE`�OSY[Z]f�r]WS_UY�ZEM�OXWXetM&TVRUWSM&f�rcf�h i oP`�r}W�OSMKJnY�M�r�WS_UY��21/./, i f i R�o�`xWSM&f�r�p"%)L$^�l`�b i o&Y�M�rEmno�R�ZUY[O~f�r�o&j i o�`�rkWSO�\QM&WS_0�M*v\uf�eS��Yne�O�f�e^o�Y[OSOnp" è $^�l`�b i o&Y�M�rEmno�R�ZUY[O~f�r�o&j i o�`�rkWSO�\QM&WS_0�/�Åî è *c\~f�eS��YnetOnp"GN+$^�l`�b i o&Y�M�rEmno�R�ZUY[O~f�r�o&j i o�`�rkWSO�\QM&WS_]bvf�eSY�WS_�`�r è *v\uf�eS��Yne�Onp"PO/$=6af�ZUY[ozm{f�rkWXeSf�o�Oðh�f�eð_Uf�R�etO�\~f�eS��Y[Z¡T�j�EíY[ZER�mn`xWSM&f�r¡��eSf�R i OQ" _�M&��_¤Otmt_Uf�f�oyf�e�o�Y[OSOn��OXf�bdYåm{f�o�o&Yn��YÂ`�r�Zm{f�o�o�Yn��YQ$�p"G.+$76af�ZUY[o×m{f�r}WXetf�o�OQh�f�ez_Uf�RUetOQ\uf�eS��Y[Z­T�j&)�Y[Z�REmn`xWSM&f�ra��etf�R i OR" o�Y[OSOQWS_E`�r�_�M���_aOSm�_Ufkf�oÌ�V_�M&��_�OSmt_�fkf�oq��OXf�bdYm{f�o�o�Yn��Y�`�r�Zïm{f�o�o�Yn��YQ$�p"G1+$S6ïflZUY[o�m{f�rkWXeSf�o�O�h�f�eQ_Uf�R�etO�\~f�eS��Y[Z]T�j i eSf�ZER�m{WSM&f�r�`�r�ZïrUf�r i eSflZ�R�m{WSM&f�rð\~f�eS��YnetOnp"C�M*T$���_UY�m{f�Yn|�mnM&Y[rkW�f�raOX�lM�o�o�Y[Zc`�r�ZaR�r�OX�lM�o�o&Y[Zðo�`xT�f�e�mn`�rï�x`xeSj�`�m{eSf�OSO^mnM&WSM&Y[O�`�r�Zïfw��YneQWSMPbdY�p"C�/�D$S6ïflZUY[o�m{f�rkWXeSf�o�OQh�f�eQmnM�W;j i f i R�o�`xWSM&f�r�p"C�2,+$S6ïflZUY[o�m{f�rkWXeSf�o�OQh�f�eQmnM�W;j i f i R�o�`xWSM&f�r�`�r�Z�f�WS_�Yne^mnM&WÓj�m�_�`xet`�m{WXYnetMPOXWSM�mnOnp

Page 47: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

U VXWYZ[\8]^�_YV` Va ZV Ybc8dW[ed fg h[ fiV fj5klm ViV [e

no pqr5stvuwXxyzwv{y|-}} ~�w� w�8�w��wXx�w y ����t uw xy�wv{y| }} ~�w� w�8�w��wXx�w y ��8�w y| u�y } �y } �x�� w y ��tvuwXxy�w {y|-}} ~�w� w�8�w��wXx�w y �� �w y|

} �y } �x�� w y ��p| }� �{|-}�� wXx}{wXx� uy|8�� x}� {� �}y|-}w {u�u{y� �� �}{wXx�w y �� �w y| u�y } �y } �x�� w y ��� �� x�� �� �}y|-}xu �wXx�� ���}u� }� ���y }�

� x��x}� ���y }� �u�� }�{���}{ �}�yw �}��� �

Page 48: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

ã~¦�¶�À�ªÅ�ÏÛV Ï��¢��·£E¥�¦�����¨�©l�±ª�¬�®×�«°w²­¨�´dµy¨l�����«¶l�Ï£V¢���ªÅ�³¦�¸Ç�����dºw»S¼½¦�¶�¦�²�¾X¸§¿�À�Á�²ÅªÅ¦��«Á­¨�¸ Ã�ªÅ¨E¿�À�°w²{¦P©V¦P²XÆ ¦�¸ÈÉ��¸�À§´;��°w²{À�ª�¦�¸�¶§Ê���Ƭ�°±¨l¸�¨lËa¦�°v¼½¦�Á�²{��¸�°«�½´Ìª�¨lËÍÈÉ�k¸EÀV´;��°±²ÅÀ�ªÅ¦�¸�¶

Coe

ffici

ent o

n C

olle

ge S

hare

in S

peci

fied

Indu

stry

Economic Distance from Manufacturing

1 3 5 7

−.5

0

.5

1

manufact

communic

trade

services

miningfinance

construc

�g¨�²Å�«Á± ���¢��gØ�¶�À�ªÅ�g¥���¨�²ÅÁQ²Å¢����«Á�²Å¦�Ë��k²{�±¿­°±¨V�wÎ�°±¦��±¸�²ÅÁy¨l¸­°«¨l�����«¶���Á�¢���ª��æ¦�¸a�x�k°n¢Â¦�¸�¿�À§Á�²{ªtÆÏÑ̴̪�¨lË �~�k������VÊ�°±¨l��À�Ëa¸üº�Ôv¨�¸¡²{¢��aÆU»S�T�V¦�Ác��¶U�k¦�¸�Át²c²Å¢��­ªÅ��¸�Ö�¦�¸¤©��k��À��a¨�´�¦�¸�¥�À§²ÅÁ«Ê�¨l¸¤²{¢�����»S�T�V¦�ÁåÑ̴̪�¨lË �~�k�����­�VÊ°«¨l��À�Ëa¸ áUÔ[Ð ã�¨lªï�D�§��Ëa¥�����ÊyË���¸�À§´;��°w²{À�ª�¦�¸�¶¤¢���Áaª{�k¸�Ö ºlÊy���«°«��À�Á��ϲ{¢§�³©k����À��í¨�´½¦�¸�¥�À§²ÅÁ�¦�Áa¢§¦�¶l¢��±Á�²´Ì¨lªvË­�k¸EÀV´;��°±²ÅÀ�ªÅ¦�¸�¶�Ðï�uªÅ��¸�Á�¥×¨lªt²n�k²Å¦�¨l¸�¢��kÁ�ªÅ��¸�Ö¤ÛVÊó²Åª{��¿��ï¢��kÁcªÅ��¸�ÖNá§Êù�w²{°�Ð���¢�� � >s£·Ø�²Å²Å�«¿ë��¦�¸§�]¦�ÁÁÅÀ�¥��«ª�¦�Ëa¥×¨�ÁÅ�«¿¯ÐQ��¢§��Á���¨l¥��aÑ;Át²n��¸§¿���ªÅ¿³�«ª�ªÅ¨lª{Ôz¨�´u²Å¢��v��¦�¸��½¦�Áy»XÙ§ÐPº�ÙlÝíÑÓÙVÐàÙ�ÜUÛlÔwÐQ£V�±�d²{�D�E²�´Ì¨lª�¿��w²n��¦���Á«Ð

Page 49: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

ã~¦�¶�À�ªÅ�³á§ Ï��¢��·£E¥�¦�����¨�©l�±ª�¬�®×�«°w²­¨�´dµy¨l�����«¶l�Ï£V¢���ªÅ�³¦�¸Ç������Û�»S¼½¦�¶�¦�²�¾X¸§¿�À�Á�²ÅªÅ¦��«Á­¨�¸ Ã�ªÅ¨E¿�À�°w²{¦P©V¦P²XÆ ¦�¸ÈÉ��¸�À§´;��°w²{À�ª�¦�¸�¶§Ê���Ƭ�°±¨l¸�¨lËa¦�°v¼½¦�Á�²{��¸�°«�½´Ìª�¨lËÍÈÉ�k¸EÀV´;��°±²ÅÀ�ªÅ¦�¸�¶

Coe

ffici

ent

Economic Distance

0 10 20 30 40

0

.6

�g¨�²Å�«Á± ���¢���Ø�¶lÀ�ªÅ��¥���¨�²{Á�²{¢§�æ�«Át²{¦�Ë­�k²Å�«¿a°«¨E�±Îa°«¦��«¸U²{Á^¨l¸a°«¨l�����«¶���Á�¢���ª��g¦�¸��«��°n¢å¦�¸§¿�À�Á�²Åª�Æï¶lª�¨lÀ�¥ÉÑ̴̪�¨lË�~�k�����däVʧ°«¨���À�Ëa¸·º�Ô�¨l¸å²{¢��gÆ�»X�T�V¦�Á��k¶U��¦�¸§Á�²y²Å¢��½ªÅ��¸�Ö­¦�¸­©k����À§�æ¨�´s¦�¸§¥�À§²{Á±Ê§¨l¸å²Å¢��R��»S�+�§¦�ÁvÑ̴̪�¨lË �~�k�����ä§Ê󰫨���À�Ëa¸¤ÛlÔwÐð��¢�� � >s£ÉØ�²Å²Å�«¿���¦�¸���¦�ÁdÁÅÀ�¥��«ª�¦�Ëa¥×¨lÁ��«¿ÞÐð��¢��ïÁÅ��¨�¥×�³ÑÌÁ�²n�k¸�¿���ª�¿¤�±ªÅª�¨lªnÔæ¨�´Q²{¢§�a��¦�¸��ð¦�Á»SÙ§Ð2Ù§º��íÑ;Ù§ÐàÙ�ÙUÛlÔwÐ�£V�«�v²{�2�V²�´Ì¨lª�¿§�±²n�k¦���Á±Ð

Page 50: NBER WORKING PAPER SERIES HUMAN CAPITAL SPILLOVERS IN … · 2002-10-29 · Human Capital Spillovers in Manufacturing: Evidence From Plant-Level Production Functions Enrico Moretti

�u���������cºl �Ã�� ��¸U²���>ó�±©l�±�Bé�k¶l��¬���À��}²{¦�¨�¸�Áº�ÝlÝlÛ º�ÝlÚUÛÑtº�Ô ÑÓÛlÔ

£V°n¢�¨E¨l��¦�¸�¶ Ù§Ð2ÙUâ�Ú Ù§Ð2ÙlÚläÑ;Ù§Ð2ÙlÙ�Ü�Ô ÑÓÙ§Ð2ÙlÙlälÔ

Ãu�±ªÅ°±�«¸U²n��¶��ðã��«Ë������ »SÙVÐàálÙkÜ »SÙ§Ð-ÜlÜUÝÑ;Ù§Ð2ÙUÛ�ÝUÔ ÑÓÙ§Ð2ÙUÛ�älÔ

Ãu�±ªÅ°±�«¸U²n��¶��ðÒy����°nÖ »SÙVÐ�º�Ûká »SÙ§Ð2ÙUÛ�äÑ;Ù§Ð2ÙU��äUÔ ÑÓÙ§Ð2ÙU��ÚlÔ

�g©��«ªÅ��¶l���æ¶l� Ù§Ð2Ù§ºlº Ù§Ð2Ù§º�ÛÑ;Ù§Ð2ÙlÙ§º�Ô ÑÓÙ§Ð2ÙlÙ§º�Ô

µy¦�²XÆå¬�®¯�±°±²{Á  Q�±Á  Q�«ÁÕvÐ�Á¡��Ð Ú§Ð2Ú ÚVÐàá

���z����������¢�£�r¤�£A¥¦¤�§M¥�¥¦¨/¥¦©�£/¤A�«ª�©�¢«§2¤­¬%¨/¥ðmnoKª©«¢«§M¥¦®�rU�¯®�r i £A¥¦§[rT¢�°�§2©¦®K©np ��°�§±¤�§ i §[r�¤�§[rL¢��A£A¥¦®K£A²Eo5§±®K©�o5¨��¯¨/¬£w�/§M¥¦£x�/§±³4£x�/§´®�rµ¢�°�§ i oK£�rT¢np:¶?£A¢�£0¨�r:³4£x�/§2©n�4¬·¥�¨+¸¹¢�°�§�ô §[r�©�ª�©#¨/¬�6´£�r�ª�¬º£�m»¢�ª�¥�§M¥¦©[�¼£A¥�§&½Eo¾£�rT¢�£w�/§M¥¦£x�/§2©¨/²�¢�£/®Pr�§2¤�²�¿3¤�®&�!®K¤�®¾ÀU�Á¢�°�§�¢«¨/¢�£/ ³4£x�/§=²�®KÂKÂò�¿0¢�°�§�À�ª�¸R²Ä§M¥F¨/¬�°�¨+ª�¥Å©F³ ¨/¥S�/§2¤�Æ´¶?£A¢�£'¨+À¯³¼¨/¥S�/§M¥Å©#£A¥¦§=Ç»§2ÂK£w�/§M¥¦£x�/§2©�¬%¥�¨+¸È¢�°�§dô §2À©�ª�©�¨/¬ÊÉ˨/½ªÂK£A¢�®5¨+À�ÆQû�¨/¥7§{��£/¸Ì½ÂK§���ÍA½Ä§M¥¦Ç»§2ÀL¢�£x�/§Î¬·§2¸�£/ÂK§2Í�®K©;¢�°�§R¬·¥¦£/Ç»¢�®K¨+À´¨/¬Ê³ ¨+¸Ì§2À®KÀ�¢�°�§Î®¾À�¤�ª�©«¢«¥¦¿�£/À�¤0ÇM®5¢�¿'¢«¨�³S°®KǦ°'¢�°�§Ì½Â¾£/ÀT¢?²Ä§2Â5¨+ÀU�+©MÆæ��°�§M¥�§Ì£A¥�§Ì)+*l�-,/.!��½ÂK£/ÀL¢�©n��¨/²©«§M¥t�/§2¤3®KÀ:�21/./,�£/À�¤�21/1/,�Æ���§M§�¢«§{�!¢S¬%¨/¥S¤�§M¢�£/®KÂK©2Æ