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Building Knowledge Stocks Locally

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  • Jeffrey A. Groen

Abstract

There is increasing evidence that the stock of college-educated labor in an area has fundamental effects on state and local economies through its association with wages, economic growth, personal incomes, and tax revenues. As a result, policy makers in many states attempt to increase the percentage of the state’s population (or workforce) that has a college degree through the use of various higher education policies that have the potential to influence the supply side of the labor market. This article reviews evidence on the effectiveness of these policies in achieving that goal. The author discusses several types of policies related to the finance and production of undergraduate education within a state, including expansions in degree production, merit-based scholarships, location-contingent financial aid, adjustments to the composition of enrollment by residency or by field of study, and internships with state-based employers.

Suggested Citation

  • Jeffrey A. Groen, 2011. "Building Knowledge Stocks Locally," Economic Development Quarterly, , vol. 25(4), pages 316-329, November.
    • Handle: RePEc:sae:ecdequ:v:25:y:2011:i:4:p:316-329
    DOI: 10.1177/0891242410388934
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    Cited by:

    1. Maria D. Fitzpatrick & Damon Jones, 2012. "Higher Education, Merit-Based Scholarships and Post-Baccalaureate Migration," NBER Working Papers 18530, National Bureau of Economic Research, Inc.

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