Factor Endowments and the Returns to Skill: New Evidence from the American Past
AbstractExisting skill-biased technical change theory predicts that differences in factor endowments will affect technology adoption and the return to skill. We document regional variation in endowments in the American past. We then estimate the returns to education using a new data source: a report from the Commissioner of Education in 1909. We find significant variation in the returns to schooling aligned with differences in resource endowments, with large (within-occupation) returns in the Midwest and Southwest but much lower returns in the South and West. Our results appear generalizable to broader returns to education in the United States.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Human Capital.
Volume (Year): 5 (2011)
Issue (Month): 2 ()
Pages: 111 - 152
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Web page: http://www.journals.uchicago.edu/JHC/
Other versions of this item:
- Joseph Kaboski & Trevon D. Logan, 2007. "Factor Endowments and the Returns to Skill: New Evidence from the American Past," NBER Working Papers 13589, National Bureau of Economic Research, Inc.
- I2 - Health, Education, and Welfare - - Education
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
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