DP3875 The Role of Human Capital Investments in the Location Decisions of Firms

Author(s):	Niko Matouschek, Frédéric Robert-Nicoud
Publication Date:	April 2003
Keyword(s):	firm location, human capital investment
JEL(s):	J41, R13, R30
Programme Areas:	International Trade and Regional Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=3875

We explore the role of human capital investments in the location decisions of firms. We show that whether human capital investments act as a force for or against concentration depends on who is undertaking them and whether they are industry- or firm-specific. We also discuss the empirical predictions of our theoretical analysis.