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 11661, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: endogenous technical change; college reform (search for similar items in EconPapers)
JEL-codes: J23 J24 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2018-07
New Economics Papers: this item is included in nep-eff, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Published - published in: Journal of the European Economic Association, 2023, 21 (1), 48–92

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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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