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Higher Education Subsidies and Human Capital Mobility

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  • John Kennan

    (University of Wisconsin Madison)

Abstract

In the U.S. there are large differences across States in the extent to which college education is subsidized, and there are also large differences across States in the proportion of college graduates in the labor force. State subsidies are apparently motivated in part by the perceived benefits of having a more educated workforce. The paper uses the migration model of Kennan and Walker (2011) to analyze how geographical variation in college education subsidies affects the migration decisions of college graduates. The model is estimated using NLSY data, and used to quantify the sensitivity of migration decisions to differences in expected net lifetime income. The preliminary estimates suggest that State subsidies have little effect on the geographical distribution of college graduates.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2012 Meeting Papers with number 308.

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Date of creation: 2012
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Handle: RePEc:red:sed012:308

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  1. John Bound & Harry J. Holzer, 1996. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," NBER Working Papers 5685, National Bureau of Economic Research, Inc.
  2. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June.
  3. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
  4. Thomas J. Kane, 2007. "Evaluating the Impact of the D.C. Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
  5. Ofer Malamud & Abigail K. Wozniak, 2010. "The Impact of College Education on Geographic Mobility: Identifying Education Using Multiple Components of Vietnam Draft Risk," NBER Working Papers 16463, National Bureau of Economic Research, Inc.
  6. Michael P. Keane & Kenneth I. Wolpin, 1995. "The career decisions of young men," Working Papers 559, Federal Reserve Bank of Minneapolis.
  7. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," NBER Working Papers 17167, National Bureau of Economic Research, Inc.
  8. Bound, John & Groen, Jeffrey & Kezdi, G.Gabor & Turner, Sarah, 2004. "Trade in university training: cross-state variation in the production and stock of college-educated labor," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 143-173.
  9. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 629-62, September.
  10. Abigail Wozniak, 2010. "Are College Graduates More Responsive to Distant Labor Market Opportunities?," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 944-970.
  11. Susan Dynarski, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," NBER Working Papers 7756, National Bureau of Economic Research, Inc.
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Cited by:
  1. Christian Dustmann & Itzhak Fadlon & Yoram Weiss, 2010. "Return Migration, Human Capital Accumulation and the Brain Drain," CReAM Discussion Paper Series 1013, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," Norface Discussion Paper Series 2011011, Norface Research Programme on Migration, Department of Economics, University College London.

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