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Higher-Education Policies and the College Wage Premium: Cross-State Evidence from the 1990s

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  • Nicole M. Fortin

Abstract

Exploiting differences across U.S. states, this paper demonstrates that there is a tight link between higher education policies, past enrollment rates, and recent changes in the college wage premium among labor market entrants. The analysis reveals, however, that this relationship is much weaker in states with high private enrollment rates, high levels of interstate mobility, or interstate trade. The withinstate estimates of the own-cohort relative supply effect shed some light on the extent to which the U.S. labor market can be characterized as a single national market or a collection of state-specific labor markets. (JEL I21, I28, J22, J24, J31, R23)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 96 (2006)
Issue (Month): 4 (September)
Pages: 959-987

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Handle: RePEc:aea:aecrev:v:96:y:2006:i:4:p:959-987

Note: DOI: 10.1257/aer.96.4.959
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References

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Cited by:
  1. Bandiera, Oriana & Larcinese, Valentino & Rasul, Imran, 2009. "Heterogeneous Class Size Effects: New Evidence from a Panel of University Students," IZA Discussion Papers 4496, Institute for the Study of Labor (IZA).
  2. Pedro Carneiro & Sokbae Lee, 2011. "Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000," American Economic Review, American Economic Association, vol. 101(6), pages 2309-49, October.
  3. Lindley, Joanne & Machin, Stephen, 2014. "Spatial changes in labour market inequality," Journal of Urban Economics, Elsevier, vol. 79(C), pages 121-138.
  4. Matthew T. Johnson, 2010. "Borrowing Constraints, College Enrollment, and Delayed Entry," Working Papers 2011-006, Human Capital and Economic Opportunity Working Group, revised Sep 2012.
  5. Parent, Olivier & LeSage, James P., 2012. "Spatial dynamic panel data models with random effects," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 727-738.
  6. Peter McHenry, 2010. "The Geographic Distribution of Human Capital: Measurement of Contributing Mechanisms," Working Papers 92, Department of Economics, College of William and Mary.
  7. KAWAGUCHI Daiji & MORI Yuko, 2014. "Winning the Race against Technology," Discussion papers 14017, Research Institute of Economy, Trade and Industry (RIETI).
  8. Bratti, Massimiliano & Leombruni, Roberto, 2009. "Local Human Capital Externalities and Wages at the Firm Level: The Case of Italian Manufacturing," IZA Discussion Papers 4613, Institute for the Study of Labor (IZA).
  9. Lindley, Joanne & Machin, Stephen, 2013. "Spatial Changes in Labour Market Inequality," IZA Discussion Papers 7600, Institute for the Study of Labor (IZA).

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