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

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

Abstract

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.

Suggested Citation

  • John Bound & Jeffrey Groen & Gabor Kezdi & Sarah Turner, 2001. "Trade in University Training: Cross-State Variation in the Production and Use of College-Educated Labor," NBER Working Papers 8555, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:8555
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    References listed on IDEAS

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    Cited by:

    1. Wildasin, David, 2003. "Fiscal Policy, Human Capital, and Canada-US Labor Market Integration," IZA Discussion Papers 889, Institute of Labor Economics (IZA).
    2. Patrick Kline & Enrico Moretti, 2014. "People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 629-662, August.
    3. 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.
    4. Javier Báez R, 2005. "¿Qué tanto han cambiado las decisiones de los jóvenes en Colombia en las tres últimas décadas?," Documentos Departamento de Economía 7291, Universidad del Norte.
    5. 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.
    6. Damon, Amy L. & Glewwe, Paul, 2008. "Should governments subsidize tuition at public universities? Assessing the benefits of tuition subsidies provided by the University of Minnesota and the Minnesota State Colleges and Universities syste," Reports 44204, University of Minnesota, International Science and Technology Practice and Policy.
    7. Jens Südekum, 2005. "The Pitfalls of Regional Education Policy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(3), pages 327-352, November.
    8. Cornwell, Christopher & Mustard, David B., 2006. "Merit Aid and Sorting: The Effects of HOPE-Style Scholarships on College Ability Stratification," IZA Discussion Papers 1956, Institute of Labor Economics (IZA).
    9. Susan E. Mayer & Leonard M. Lopoo & Lincoln H. Groves, 2016. "Government spending and the distribution of economic growth," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 399-415, October.

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    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • I2 - Health, Education, and Welfare - - Education

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