IDEAS home Printed from https://ideas.repec.org/a/spr/jopoec/v36y2023i3d10.1007_s00148-022-00919-9.html
   My bibliography  Save this article

The impact of a local human capital shock: evidence from World War II veterans

Author

Listed:
  • Jongkwan Lee

    (Ewha Womans University)

Abstract

As a result of the GI Bill, returning World War II veterans were generally highly educated, but their locations following the war were highly uneven across cities in the USA. Exploiting the spatial variation in these returning veterans driven by prewar communities of veterans, I study the long-run persistence of an increase in local human capital. While there is strong persistence in skills across cities, this shock produced a large and uneven increase in local skills after the war. Furthermore, this positive shock had long-lasting effects on local human capital from 1940 to 2010.

Suggested Citation

  • Jongkwan Lee, 2023. "The impact of a local human capital shock: evidence from World War II veterans," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1765-1798, July.
  • Handle: RePEc:spr:jopoec:v:36:y:2023:i:3:d:10.1007_s00148-022-00919-9
    DOI: 10.1007/s00148-022-00919-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00148-022-00919-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s00148-022-00919-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Claudia Goldin & Claudia Olivetti, 2013. "Shocking Labor Supply: A Reassessment of the Role of World War II on Women's Labor Supply," American Economic Review, American Economic Association, vol. 103(3), pages 257-262, May.
    2. Peter McHenry, 2014. "The Geographic Distribution Of Human Capital: Measurement Of Contributing Mechanisms," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 215-248, March.
    3. Berry, Christopher R. & Glaeser, Edward L., 2005. "Divergence of Human Capital Levels across Cities," Working Paper Series rwp05-057, Harvard University, John F. Kennedy School of Government.
    4. John DiNardo & David Card, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May.
    5. Simon, Curtis J. & Nardinelli, Clark, 1996. "The Talk of the Town: Human Capital, Information, and the Growth of English Cities, 1861 to 1961," Explorations in Economic History, Elsevier, vol. 33(3), pages 384-413, July.
    6. Dan Black & Terra McKinnish & Seth Sanders, 2005. "The Economic Impact Of The Coal Boom And Bust," Economic Journal, Royal Economic Society, vol. 115(503), pages 449-476, April.
    7. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    8. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1055-1089.
    9. Bosker, Maarten & Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2007. "Looking for multiple equilibria when geography matters: German city growth and the WWII shock," Journal of Urban Economics, Elsevier, vol. 61(1), pages 152-169, January.
    10. John Bound & Sarah Turner, 2002. "Going to War and Going to College: Did World War II and the G.I. Bill Increase Educational Attainment for Returning Veterans?," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 784-815, October.
    11. Dora L. Costa & Matthew E. Kahn, 2000. "Power Couples: Changes in the Locational Choice of the College Educated, 1940–1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1287-1315.
    12. Costa, Dora L. & Kahn, Matthew E. & Roudiez, Christopher & Wilson, Sven, 2018. "Persistent social networks: Civil war veterans who fought together co-locate in later life," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 289-299.
    13. Christoph Eder, 2014. "Missing Men: World War II Casualties and Structural Change," NRN working papers 2014-03, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    14. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    15. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    16. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    17. Michael F. Lovenheim, 2011. "The Effect of Liquid Housing Wealth on College Enrollment," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 741-771.
    18. Rebecca Diamond, 2016. "The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000," American Economic Review, American Economic Association, vol. 106(3), pages 479-524, March.
    19. Hoyt Bleakley & Jeffrey Lin, 2012. "Portage and Path Dependence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(2), pages 587-644.
    20. Marianne Page, 2006. "Father's Education and Children's Human Capital: Evidence from the World War II GI Bill," Working Papers 84, University of California, Davis, Department of Economics.
    21. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    22. Matthew Larsen & T. McCarthy & Jeremy Moulton & Marianne Page & Ankur Patel, 2015. "War and Marriage: Assortative Mating and the World War II GI Bill," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1431-1461, October.
    23. Nathaniel Baum-Snow & Matthew Freedman & Ronni Pavan, 2018. "Why Has Urban Inequality Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 1-42, October.
    24. Francesca Mazzolari & Giuseppe Ragusa, 2013. "Spillovers from High-Skill Consumption to Low-Skill Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 74-86, March.
    25. Edward Ludwig Glaeser & Albert Saiz, 2003. "The rise of the skilled city," Working Papers 04-2, Federal Reserve Bank of Philadelphia.
    26. Glaeser, Edward L., 1994. "Why does schooling generate economic growth?," Economics Letters, Elsevier, vol. 44(3), pages 333-337.
    27. Campante, Filipe & Yanagizawa-Drott, David, 2015. "The Intergenerational Transmission of War," Working Paper Series rwp15-039, Harvard University, John F. Kennedy School of Government.
    28. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, August.
    29. Daron Acemoglu & David H. Autor & David Lyle, 2004. "Women, War, and Wages: The Effect of Female Labor Supply on the Wage Structure at Midcentury," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 497-551, June.
    30. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291, Elsevier.
    31. Marcus Stanley, 2003. "College Education and the Midcentury GI Bills," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 671-708.
    32. Christopher R. Berry & Edward L. Glaeser, 2005. "The divergence of human capital levels across cities," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 407-444, August.
    33. Giovanni Peri & Kevin Shih & Chad Sparber, 2016. "STEM Workers, H-1B Visas, and Productivity in US Cities," World Scientific Book Chapters, in: The Economics of International Migration, chapter 9, pages 277-307, World Scientific Publishing Co. Pte. Ltd..
    34. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," NBER Working Papers 17167, National Bureau of Economic Research, Inc.
    35. Leah Boustan & Allison Shertzer, 2013. "Population Trends as a Counterweight to Central City Decline, 1950–2000," Demography, Springer;Population Association of America (PAA), vol. 50(1), pages 125-147, February.
    36. Christopher R. Berry & Edward L. Glaeser, 2005. "The Divergence of Human Capital Levels across Cities," Harvard Institute of Economic Research Working Papers 2091, Harvard - Institute of Economic Research.
    37. Miguel, Edward & Roland, Gérard, 2011. "The long-run impact of bombing Vietnam," Journal of Development Economics, Elsevier, vol. 96(1), pages 1-15, September.
    38. Rose, Evan K., 2018. "The Rise and Fall of Female Labor Force Participation During World War II in the United States," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 673-711, September.
    39. Simon, Curtis J. & Nardinelli, Clark, 2002. "Human capital and the rise of American cities, 1900-1990," Regional Science and Urban Economics, Elsevier, vol. 32(1), pages 59-96, January.
    40. Daniel K. Fetter, 2013. "How Do Mortgage Subsidies Affect Home Ownership? Evidence from the Mid-century GI Bills," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 111-147, May.
    41. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
    42. Simon, Curtis J., 1998. "Human Capital and Metropolitan Employment Growth," Journal of Urban Economics, Elsevier, vol. 43(2), pages 223-243, March.
    43. Christopher R. Berry & Edward L. Glaeser, 2005. "The Divergence of Human Capital Levels Across Cities," NBER Working Papers 11617, National Bureau of Economic Research, Inc.
    44. Duncan Black and Vernon Henderson, 1997. "A Theory of Urban Growth," Working Papers 97-1, Brown University, Department of Economics.
    45. Paul Beaudry & Mark Doms & Ethan Lewis, 2010. "Should the Personal Computer Be Considered a Technological Revolution? Evidence from U.S. Metropolitan Areas," Journal of Political Economy, University of Chicago Press, vol. 118(5), pages 988-1036.
    46. Donald R. Davis & David E. Weinstein, 2002. "Bones, Bombs, and Break Points: The Geography of Economic Activity," American Economic Review, American Economic Association, vol. 92(5), pages 1269-1289, December.
    47. Marianne Page, 2006. "Father's Education and Children's Human Capital: Evidence from the World War II GI Bill," Working Papers 633, University of California, Davis, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John V. Winters, 2013. "Human capital externalities and employment differences across metropolitan areas of the USA," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 799-822, September.
    2. Elisa Giannone, 2017. "Skill-Biased Technical Change and Regional Convergence," 2017 Meeting Papers 190, Society for Economic Dynamics.
    3. David H. Autor, 2019. "Work of the Past, Work of the Future," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 1-32, May.
    4. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    5. Broxterman, Daniel A. & Yezer, Anthony M., 2020. "Measuring human capital divergence in a growing economy," Journal of Urban Economics, Elsevier, vol. 118(C).
    6. Daniel Broxterman & Anthony Yezer, 2021. "Human capital divergence and the size distribution of cities: Is Gibrat’s law obsolete?," Urban Studies, Urban Studies Journal Limited, vol. 58(12), pages 2549-2568, September.
    7. Edlund, Lena & Machado, Cecilia & Sviatschi, Maria, 2015. "Bright Minds, Big Rent: Gentrification and the Rising Returns to Skill," IZA Discussion Papers 9502, Institute of Labor Economics (IZA).
    8. Winters, John V., 2014. "STEM graduates, human capital externalities, and wages in the U.S," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 190-198.
    9. Edward L. Glaeser & Giacomo A. M. Ponzetto & Kristina Tobio, 2014. "Cities, Skills and Regional Change," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 7-43, January.
    10. John V. Winters, 2011. "Why Are Smart Cities Growing? Who Moves And Who Stays," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 253-270, May.
    11. Edlund, Lena & Machado, Cecilia & Sviatschi, Maria, 2015. "Bright Minds, Big Rent: Gentrification and the Rising Returns to Skill," IZA Discussion Papers 9502, Institute of Labor Economics (IZA).
    12. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    13. Arntz, Melanie & Brüll, Eduard & Lipowski, Cäcilia, 2021. "Do preferences for urban amenities really differ by skill?," ZEW Discussion Papers 21-045, ZEW - Leibniz Centre for European Economic Research.
    14. Ganong, Peter & Shoag, Daniel, 2017. "Why has regional income convergence in the U.S. declined?," Journal of Urban Economics, Elsevier, vol. 102(C), pages 76-90.
    15. Südekum, Jens, 2008. "Convergence of the skill composition across German regions," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 148-159, March.
    16. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 155-253.
    17. Winters, John V., 2011. "Human capital, higher education institutions, and quality of life," Regional Science and Urban Economics, Elsevier, vol. 41(5), pages 446-454, September.
    18. Edward L. Glaeser & Giacomo A.M. Ponzetto & Kristina Tobio, 2010. "The Varieties of Regional Change," Working Papers 472, Barcelona School of Economics.
    19. Winters, John V., 2014. "The Production and Stock of College Graduates for U.S. States," IZA Discussion Papers 8730, Institute of Labor Economics (IZA).
    20. Antonio Accetturo & Alberto Dalmazzo & Guido Blasio, 2014. "Skill Polarization In Local Labor Markets Under Share-Altering Technical Change," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 249-272, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jopoec:v:36:y:2023:i:3:d:10.1007_s00148-022-00919-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.