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

Pedro Carneiro, Kai Liu () and Kjell G Salvanes
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Kai Liu: University of Cambridge, Postal: Faculty of Economics, University of Cambridge, Sidgwick Avenue, Cambridge, CB3 9DD, UK

No 16/2018, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

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: Skilled labor; skilled wages; college expansion reform (search for similar items in EconPapers)
JEL-codes: J23 J24 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2018-07-17
New Economics Papers: this item is included in nep-gro and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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http://hdl.handle.net/11250/2558929 Full text (application/pdf)

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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