Are College Graduates More Responsive to Distant Labor Market Opportunities?
Are highly educated workers better at locating in areas with high labor demand? To answer this question, I use three decades of U.S. Census data to estimate a McFadden-style model of residential location choice. I test for education differentials in the likelihood that young workers reside in states experiencing positive labor demand shocks at the time these workers entered the labor market. I find effects of changes in state labor demand on college graduate location choice that are several times greater than for high school graduates. Nevertheless, medium-run wage effects of entry labor market conditions for college graduates equal or exceed those of less-educated workers.
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- Yuji Genda & Ayako Kondo & Souichi Ohta, 2010. "Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
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- 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, November.
- Paul S. Davies & Michael J. Greenwood & Haizheng Li, 2001. "A Conditional Logit Approach to U.S. State-to-State Migration," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 337-360.
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