Regional differentiation of human capital – analysis based on the Mincer wage equation

Abstract

The main objective of this paper was an attempt to assess the differentiation of human capital at the level of Polish regions (voivodeships, NUTS-2 level). For this purpose, we used unidentifiable unit data from a survey the Central Statistical Office conducted on the structure of wages and salaries in October 2016 (Z-12), data from the Labour Force Survey (LFS), and data on the life expectancy of women and men. The GUS microdata from the Z-12 study was used to estimate the parameters of the Mincer-type extended wage regression, separately for each voivodeship. In the next step, these estimates were used as weights to calculate the human capital index, taking into account the health condition, education, and professional experience of employees. The values of the aforementioned measure were estimated for 2016 and 2019 (the assumption of weight stability over a short time period was made). The analysis conducted made it possible to determine which regions are characterised by the highest and lowest levels of human capital. The highest levels of human capital were found in Mazowieckie, Pomorskie, and Małopolskie. The voivodeships with the lowest level of the considered measures were Lubuskie, Warmińsko-Mazurskie, Podlaskie, Podkarpackie, and Łódzkie. When comparing the values of the human capital index between 2016 and 2019, it can be concluded that the regions with the lowest value of this measure were also characterised by lower dynamics (the only exception was Lubelskie). Such a situation will probably favor the divergence of human capital between regions. This may, therefore, translate into the persistence (or deepening) of differences in the levels of development of these voivodeships, compared to more developed regions.