The impact of non-local human capital on local wages: exploring daily inflow of non-local human capital and its impact on local wages

This study investigates the impact of daily inflow of non-local human capital on the wages of locals by tracing 14 billion inter-borough movements of people in Seoul, South Korea, in 2019, using mobile phone signal data as a proxy for the location of individuals. The findings reveal that the daily inflow of non-local human capital is beneficial for the wages of low-educated locals but detrimental for the wages of highly-educated locals. Additionally, the study finds that the inflow is advantageous for locals only when it originates from different age groups, and it is more beneficial when it comes from the older age group than from the younger age group. This research advances the existing literature on the relationship between local human capital and local wages by highlighting the substantial daily inflow of non-local human capital and demonstrating the significance of not only local but also non-local human capital in local wages.