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VALENCIAN INSTITUTE OF ECONOMIC RESEARCH

Human Capital Notes

Human capital and employment in Spanish regions

Abstract

Are those with a low education level having a tougher time during the current crisis than in the recession of 1994? Yes, as shown by the data in this issue, which discusses, among other things, the impact of the last two Spanish economic crises on employment.In addition to affecting more severely those who have fewer studies, the current crisis has affected a lesser extent of people with higher education levels. Having a higher education level is a major advantage when it comes to being employed. In 2010, the unemployment rate of graduates was 11%, compared with 19% in 1994. This trend is true for all Spanish regions, with the exception of La Rioja. Indeed, this issue also shows that regional disparities continue to exist in the distribution of human capital, both regarding the education levels as well as their relation with the labor market. For example, while in 2010 the weight of workers with post-compulsory studies in Madrid was 73.2%, in Extremadura it was 48.9%.

 

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