The supply of skill and endogenous technical change: evidence from a college expansion reform

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...

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Veröffentlicht in:Journal of the European Economic Association 2023-02, Vol.21 (1), p.48-92
1. Verfasser: Carneiro, Pedro
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description 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.
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subjects 1967-1990
Akademiker
Arbeitsangebotsverhalten
Arbeitsnachfrage
Endogenes Wachstumsmodell
Norwegen
title The supply of skill and endogenous technical change: evidence from a college expansion reform
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