Natural Resources, Demand for Skills, and Schooling Choices

Aline Bütikofer, Antonio Dalla-Zuanna () and Kjell G Salvanes
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Antonio Dalla-Zuanna: Bank of Italy

No 16286, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short-term and long-term effects for a broad set of educational margins, by comparing individuals in regions exposed to the new sector with individuals in unexposed regions. Importantly, we analyze how the effects and the mechanisms change as the sector develops. Our results indicate that an initial increase in the high school dropout rate is short-lived both because dropouts get their degrees later as adults, and because later-born cohorts adapt to the new needs of the industry by enrolling more in vocational secondary education. We also observe a decrease in academic high school and college enrollment except for engineering degrees. Financial incentives to both completing high school and field of study, are the most likely channels driving these effects.

Keywords: human capital; labor markets and school enrollment; education; skill-biased technical change (search for similar items in EconPapers)
JEL-codes: I J (search for similar items in EconPapers)
Pages: 52 pages
Date: 2023-07
New Economics Papers: this item is included in nep-edu, nep-lab and nep-ure
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https://docs.iza.org/dp16286.pdf (application/pdf)

Related works:
Working Paper: Natural Resources, Demand for Skills, and Schooling Choices (2023)
Working Paper: Natural Resources, Demand for Skills, and Schooling Choices (2023)
Working Paper: Natural Resources, Demand for Skills, and Schooling Choices (2023)
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