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This paper examines whether differences in educational externalities affect individual earnings across regions in the EU. Using microeconomic data from the European Community Household Panel, the analysis relies on spatial economic analysis in order to determine to what extent differences in individual earnings are the result of the educational attainment of the individual, the educational attainment of the other members of the household he/she lives in, the educational endowment of the region where the individual lives, or the educational endowment of the neighbouring regions.
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