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

Pedro Carneiro (), Kai Liu () and Kjell G Salvanes ()
Additional contact information
Kai Liu: University of Cambridge

No 2018-041, Working Papers from Human Capital and Economic Opportunity Working Group

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: labor market outcomes; returns to skill; technical change (search for similar items in EconPapers)
JEL-codes: J08 J30 J24 O00 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lma and nep-ltv
Date: 2018-07
Note: MIP
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http://humcap.uchicago.edu/RePEc/hka/wpaper/Carnei ... endo-tech-change.pdf First version, July 9, 2018 (application/pdf)

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