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

Publication Date


JEL Code(s)


Programme Area(s)


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.