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Trade in University Training: Cross-State Variation in the Production and Use of College-Educated Labor

  • John Bound
  • Jeffrey Groen
  • Gabor Kezdi
  • Sarah Turner

The main question addressed in this analysis is how the production of undergraduate and graduate education at the state level affects the local stock of university-educated workers. The potential mobility of highly skilled workers implies that the number of college students graduating in an area need not affect the number of college graduates living in the area. However, the production of relatively large numbers of college and university graduates in an area may lead to increases in the employment of university-trained manpower if local industries expand production of goods that use college-educated workers intensively. Using data from the U.S., we find a modest link between the production and use of BA degree recipients; states awarding relatively large numbers of BA degrees in each cohort also have somewhat higher concentrations of college-educated workers.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8555.

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Date of creation: Oct 2001
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Publication status: published as Bound, John, Jeff Groen, Gabor Kezdi, and Sarah Turner. “Trade in University Training." Journal of Econometics 121 (2004): 143-173.
Handle: RePEc:nbr:nberwo:8555
Note: LS
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  6. Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank.
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  9. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  10. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
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