The Supply of Skill and Endogenous Technical Change: Evidence from a College Expansion Reform
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Publication Date
2023-02-11Journal Title
Journal of the European Economic Association
ISSN
1542-4766
Publisher
Oxford University Press (OUP)
Number
11661
Type
Article
This Version
AM
Metadata
Show full item recordCitation
Carneiro, P., Liu, K., & Salvanes, K. G. (2023). The Supply of Skill and Endogenous Technical Change: Evidence from a College Expansion Reform. Journal of the European Economic Association, (11661) https://doi.org/10.1093/jeea/jvac032
Abstract
We examine the labor market consequences of an exogenous increase in the supply of skilled
labor in several municipalities 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.
Keywords
J23, J24, endogenous technical change, college reform
Embargo Lift Date
2023-06-07
Identifiers
External DOI: https://doi.org/10.1093/jeea/jvac032
This record's URL: https://www.repository.cam.ac.uk/handle/1810/338246
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