| 요약2 |
Recently, world economy has changed into knowledge-based economy focusing on knowledge. The specific feature of knowledge-based economy is that the important input in the knowledge-based economy is human capital, not physical capital such as huge factories or land. It is important to foster and make the best use of human capital in order to keep growing in the knowledge-based economy. So far, studies on human capital in Korea have focused on the internal effects of human capital, which the growth of labor productivity of a worker is internalized only to the worker himself. There is another effects of human capital, however, which the growth of labor productivity affects other workers’ productivity. This is called the external effects of human capital. The external effects of human capital are important: external effects of human capital is a source of local economy growth and one of the reasons of existence of cities. This paper is focused on the external effects of human capital in Korea. The purpose of research is constructed in two parts: verifying the existence of external effects of human capital and estimating the magnitude of external effects of human capital. Using Data from Korean Labor and Income Panel Study (KLIPS) over 5,434 wage workers and through 8 years from 1998 to 2005, this paper constructs an unbalanced panel data model. Panel data endows fixed effect over each worker, so that a researcher is able to control the omitted variables bias. This paper shows that there exist external effects of human capital and that 1% growth of college graduates induces 0.83% growth of labor productivity. This is the external effects caused by the quality of labor market improvement. Efforts to maximize the magnitude of external effects of human capital are crucial because it is connected directly to the local economy growth in the knowledge-based economy. |