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Problem on the Plains: College Earnings Premiums in Small Metropolitan Areas

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  • Winters, John V.

    (Iowa State University)

Abstract

I use the American Community Survey to examine how college earnings premiums differ across small metropolitan statistical areas (MSAs) in the U.S. I document that the West North Central Division (Plains Region) has especially low average college earnings premiums. Controlling for observable MSA characteristics via regression explains some of the difference between the Plains and other regions, but large and important differences remain. The low return to education for small MSAs in the Plains suggests that they will face special challenges building and retaining human capital in the near future. These areas may especially struggle to attract college-educated in-migrants.

Suggested Citation

  • Winters, John V., 2020. "Problem on the Plains: College Earnings Premiums in Small Metropolitan Areas," IZA Discussion Papers 13970, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13970
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    More about this item

    Keywords

    college earnings premiums; college graduates; human capital; returns to education;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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