Schooling Supply and the Structure of Production: Evidence from US States 1950–1990

Antonio Ciccone and Giovanni Peri

No 377, ADB Economics Working Paper Series from Asian Development Bank

Abstract: We find that over the period 1950–1990, states in United States absorbed increases in the supply of schooling due to tighter compulsory schooling and child labor laws mostly through within-industry increases in the schooling intensity of production. Shifts in the industry composition towards more schooling-intensive industries played a less important role. To try and understand this finding theoretically, we consider a free trade model with two goods/industries, two skill types, and many regions that produce a fixed range of differentiated varieties of the same goods. We find that a calibrated version of the model can account for shifts in schooling supply being mostly absorbed through within-industry increases in the schooling intensity of production even if the elasticity of substitution between varieties is substantially higher than estimates in the literature.

Keywords: human capital; skills; schooling; labor demand; United States (search for similar items in EconPapers)
JEL-codes: E24 I20 J23 J24 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013-09-13
New Economics Papers: this item is included in nep-edu, nep-his, nep-hrm, nep-lab, nep-mac and nep-tid
Note: http://www.adb.org/sites/default/files/pub/2013/ewp-377.pdf
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Related works:
Working Paper: Schooling Supply and the Structure of Production: Evidence from US States 1950-1990 (2015)
Working Paper: Schooling Supply and the Structure of Production: Evidence from US States 1950-1990 (2011)
Working Paper: Schooling supply and the structure of production: Evidence from US States 1950-1990 (2011)
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