The Supply of Skill and Endogenous Technical Change: Evidence From a College Expansion Reform

Kjell G Salvanes, Pedro Carneiro and Kai Liu

No 13045, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several cities in Norway, resulting from the construction of new colleges in the 1970s. We find that skilled wages increased as a response, suggesting that along with an increase in the supply there was also an increase in demand for skill. We also show that college openings led to an increase in the productivity of skilled labor and investments in R&D. Our findings are consistent with models of endogenous technical change where an abundance of skilled workers may encourage firms to adopt skill-complementary technologies, leading to an upward-sloping long-run demand for skill.

Keywords: Endogenous technical change; College reform; Supply of skills (search for similar items in EconPapers)
JEL-codes: J23 J24 (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-eff and nep-ltv
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Citations: View citations in EconPapers (19)

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Related works:
Journal Article: The Supply of Skill and Endogenous Technical Change: Evidence from a College Expansion Reform (2023)
Working Paper: The Supply of Skill and Endogenous Technical Change: Evidence From a College Expansion Reform (2018)
Working Paper: The Supply of Skill and Endogenous Technical Change: Evidence From a College Expansion Reform (2018)
Working Paper: The supply of skill and endogenous technical change: evidence from a college expansion reform (2018)
Working Paper: The Supply of Skill and Endogenous Technical Change: Evidence from a College Expansion Reform (2018)
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