In this paper we want to assess if the positive association between individual earnings and local average education is due to human capital externalities or just reflects some ommitted factors. Using a sample of displaced workers, we take into account firm characteristics as well as individual...

We built a general equilibrium endogenous growth model in which final goods are produced either in the relatively skilled-labour intensive exports sector or in the relatively unskilled-labour intensive domestic sector. We show that, by affecting the technological-knowledge bias, subsidies...