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Natural Resources, Demand for Skills, and Schooling Choices

Author

Listed:
  • Aline Bütikofer

    (Norwegian School of Economics)

  • Antonio Dalla-Zuanna

    (Bank of Italy)

  • Kjell Salvanes

    (Norges Handelshøyskole)

Abstract

This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short-term and long-term effects for a broad set of educational margins, by comparing individuals in regions exposed to the new sector with individuals in unexposed regions. Importantly, we analyze how the effects and the mechanisms change as the sector develops. Our results indicate that an initial increase in the high school dropout rate is short-lived both because dropouts get their degrees later as adults, and because later-born cohorts adapt to the new needs of the industry by enrolling more in vocational secondary education. We also observe a decrease in academic high school and college enrollment except for engineering degrees. Financial incentives to both completing high school and field of study, are the most likely channels driving these effects.

Suggested Citation

  • Aline Bütikofer & Antonio Dalla-Zuanna & Kjell Salvanes, 2023. "Natural Resources, Demand for Skills, and Schooling Choices," Working Papers 2023-019, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2023-019
    Note: MIP
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    References listed on IDEAS

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    More about this item

    Keywords

    petroleum industry; Norway; high school dropout rate;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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