TITLE:
Finding Externalities: An Empirical Study on the US Agricultural Industry
AUTHORS:
Chong-Uk Kim, Gieyoung Lim
KEYWORDS:
Externality; Spillover Effects; Higher Education
JOURNAL NAME:
Modern Economy,
Vol.4 No.9,
September
5,
2013
ABSTRACT: This paper searches for another empirical
evidence supporting positive externalities from higher education. Using state-level
US data on agriculture and IT industries, we find that there are positive
spillover effects from more-knowledge intensive workers in the IT
industry to less-knowledge intensive workers in the agricultural
industry. According to our empirical findings, one well-educated IT worker
generates and contributes $11,000 to the agricultural industry, which implies that
the benefits of higher education are diffused from education beneficiaries to
the other member of society.