THE GEOGRAPHIC DISTRIBUTION OF HUMAN CAPITAL: MEASUREMENT OF CONTRIBUTING MECHANISMS

ABSTRACT This paper investigates how the geographic distribution of human capital—measured as college attainment—evolves over time. With U.S. data, I decompose generation‐to‐generation changes in local human capital into three factors: the previous generation's human capital, intergenerational transmission of skills from parents to their children, and migration of the children. I find significant persistence of local skills at the commuting zone (local labor market) level. Labor market size, climate, and local colleges affect local skill measures. Skills move from urban‐to‐rural labor markets through intergenerational transmission but from rural‐to‐urban labor markets through migration.