Schooling supply and the structure of production: Evidence from US States 1950-1990

Antonio Ciccone and Giovanni Peri

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We find that over the period 1950-1990, US states absorbed increases in the supply of schooling due to tighter compulsory schooling and child labor laws mostly through within-industry increases in the schooling intensity of production. Shifts in the industry composition towards more schooling-intensive industries played a less important role. To try and understand this finding theoretically, we consider a free trade model with two goods/industries, two skill types, and many regions that produce a fixed range of differentiated varieties of the same goods. We find that a calibrated version of the model can account for shifts in schooling supply being mostly absorbed through within-industry increases in the schooling intensity of production even if the elasticity of substitution between varieties is substantially higher than estimates in the literature.

Keywords: Schooling supply; Within-industry absorption; Industry composition (search for similar items in EconPapers)
JEL-codes: F1 J3 R1 (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-his and nep-lab
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Schooling Supply and the Structure of Production: Evidence from US States 1950-1990 (2015)
Working Paper: Schooling Supply and the Structure of Production: Evidence from US States 1950–1990 (2013)
Working Paper: Schooling Supply and the Structure of Production: Evidence from US States 1950-1990 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1295

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