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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 ()
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Kai Liu: Institute for Fiscal Studies

No CWP42/18, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

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 fi nd 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 fi rms to adopt skill-complementary technologies, leading to an upward-sloping long-run demand for skill.

New Economics Papers: this item is included in nep-eff and nep-ltv
Date: 2018-07-11
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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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