Skills, Majors, and Jobs: Does Higher Education Respond?

Jonathan G. Conzelmann, Steven W. Hemelt, Brad J. Hershbein (), Shawn M. Martin, Andrew Simon and Kevin M. Stange
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Jonathan G. Conzelmann: The University of North Carolina at Chapel Hill
Steven W. Hemelt: The University of North Carolina at Chapel Hill
Brad J. Hershbein: W.E. Upjohn Institute for Employment Research, https://www.upjohn.org/about/upjohn-team/staff/brad-j-hershbein
Shawn M. Martin: University of Michigan
Andrew Simon: The University of Chicago and Australian National University Research School of Economics
Kevin M. Stange: University of Michigan

No 24-400, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: How does postsecondary human capital investment respond to changes in labor market skill demand? We quantify the magnitude and nature of this response in the U.S. 4-year sector. To do so, we develop a new measure of institution-major-specific labor demand, and corresponding shift-share instrument, that combines job ads with alumni locations. We find that postsecondary human capital investments meaningfully respond. We estimate elasticities for degrees and credits centered around 1.3, generally increasing with time horizon. We provide evidence that both student demand and institutional supply-side constraints matter. Our findings illuminate the nature of educational production in higher education.

Keywords: labor demand; skill demand; college major; educational investment (search for similar items in EconPapers)
JEL-codes: I23 J23 J24 (search for similar items in EconPapers)
Date: 2024-04
New Economics Papers: this item is included in nep-lma and nep-mac
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Related works:
Working Paper: Skills, Majors, and Jobs: Does Higher Education Respond? (2023)
Working Paper: Skills, Majors, and Jobs: Does Higher Education Respond? (2023)
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