Trade in university training: cross-state variation in the production and stock of college-educated labor

Bound, John; Groen, Jeffrey A.; Kézdi, Gábor; Turner, Sarah

doi:10.1016/j.jeconom.2003.10.012

“…by Bound et al (2004). 13 Taken at face value, this point estimate suggests that a doubling of degree production is associated with a 12 percent increase in a metropolitan area's human capital stock.…”

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confidence: 86%

“…Column (2) reports the results of our model when the research intensity of a metropolitan area is also included. Overall, the empirical model performs quite well, explaining nearly half of the 13 Bound et al (2004) report state-level elasticity estimates of 0.32-0.34 using data on the number of bachelor's degrees produced per capita across the 48 continental states during the 1960 to 1990 period. When aggregating our data to the state level, we produce elasticity estimates of 0.31-0.32. variation in human capital levels across metropolitan areas compared to around 37 percent when only degree production is considered.…”

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confidence: 87%

“…Indeed, because state governments are an important source of funding for U.S. higher education institutions, much of the existing literature has attempted to examine the relationship between the production of degrees and stock of college graduates from the perspective of a state government analyzing the return on its investment (Bound et al 2004;Groen 2004).…”

Section: Introductionmentioning

confidence: 99%

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Do Colleges and Universities Increase Their Region’s Human Capital?

Abel

¹

,

Deitz

²

2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe investigate whether the degree production and research and development (R&D) activities of colleges and universities are related to the amount and types of human capital present in the metropolitan areas where the institutions are located. We find that degree production has only a small positive relationship with local stocks of human capital, suggesting that migration plays an important role in the geographic distribution of human capital. Moreover, we show that spillovers from academic R&D activities tilt the structure of local labor markets toward occupations requiring innovation and technical training. These findings demonstrate that colleges and universities raise local human capital levels by increasing both the supply of and demand for skill.

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“…Bound et al (2004) examine whether states with more colleges and universities have larger numbers of college-graduate residents. Their analysis combines Census data with surveys conducted by the Department of Education.…”

Section: Literature Reviewmentioning

confidence: 99%

Credible redistributive policies and migration across U.S. states

Armenter

¹

,

Ortega

²

2010

Review of Economic Dynamics

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Does worker mobility undermine governments'ability to redistribute income? This paper analyzes the experience of US states in the recent decades. We build a tractable model where both migration decisions and redistribution policies are endogenous. We calibrate the model to match skill premium and worker productivity at the state level, as well as the size and skill composition of migration ‡ows. The calibrated model is able to reproduce the large changes in skill composition as well as key qualitative relationships of labor ‡ows and redistribution policies observed in the data. Our results suggest that regional di¤erences in labor productivity are an important determinant of interstate migration. We use the calibrated model to compare the cross-section of redistributive policies with and without worker mobility. The main result of the paper is that interstate migration has induced substantial convergence in tax rates across US states, but no race to the bottom. Skill-biased in-migration has reduced the skill premium and the need for tax-based redistribution in the states that would have had the highest tax rates in the absence of mobility.

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“…Bound et al (2004) have a paper that estimates that 15 years after some increase in a state's production flow of college grads, the increase in the stock of college grads is about 30 percent of the flow increase. This presumably reflects some normal out-migration of college grads, plus the effects on migration patterns, due to changes in state labor market conditions caused by a shock to college grad labor supply.…”

Section: Human Capital Developmentmentioning

confidence: 99%

Higher Education, the Health Care Industry, and Metropolitan Regional Economic Development: What Can Eds and Meds Do for the Economic Fortunes of a Metro Area's Residents?

Bartik¹,

Erickcek²

2007

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may ABSTRACTThis paper examines the effects of expansions in higher educational institutions and the medical service industry on the economic development of a metropolitan area. This examination pulls together previous research and provides some new empirical evidence. We provide quantitative evidence of the magnitude of economic effects of higher education and medical service industries that occur through the mechanism of providing some export-base demand stimulus to a metropolitan economy. We also provide quantitative evidence on how much higher education institutions can boost a metropolitan economy through increasing the educational attainment of local residence. We estimate that medical service industries pay above average wages, holding worker characteristics constant, whereas the higher education industry pays below average wages; the wage standards of these industries may affect overall metropolitan wages. We also discuss other mechanisms by which these two industries may boost a metropolitan economy, including: increasing local amenities, generating R&D spillovers, increasing the rate of entrepreneurship in local businesses, and helping provide local leadership on development and growth issues. Finally, the paper discusses possible effects of these two industries on disparities between the central city and suburbs in a metropolitan area.JEL Classification: R58, R11, R23, R53Paper prepared for the Conference on Urban and Regional Policy Effects, held on March 29-30, 2007, and sponsored by the George Washington University Institute of Public Policy and School of Public Policy and Administration, the Brookings Institution, and the Urban Institute. The authors appreciate the assistance of Wei-Jang Huang, Claire Black, Linda Richer, Babette Schmitt, and Julie Kurtz. We also thank Lara Shore-Sheppard, Diane Pfundstein, and David Jaeger for help in matching metro areas from the various censuses. This paper should not be construed as official views of any of the sponsors of this conference, or of the Upjohn Institute. A substantially shortened version of this paper was published in the book Urban and Regional Policy and Its Effects (Margery Austin Turner, Howard Wind, and Hal Wolman, eds.) with an average of 6 percent of total city jobs accounted for by these large eds and meds (Harkavy and Zuckerman 1999).Even if eds and meds boost the economy of their nearby neighborhoods and cities, eds and meds may not boost th...

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Trade in university training: cross-state variation in the production and stock of college-educated labor

Cited by 110 publications

References 23 publications

Do Colleges and Universities Increase Their Region’s Human Capital?

Do Colleges and Universities Increase Their Region’s Human Capital?

Credible redistributive policies and migration across U.S. states

Higher Education, the Health Care Industry, and Metropolitan Regional Economic Development: What Can Eds and Meds Do for the Economic Fortunes of a Metro Area's Residents?

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