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Title: Schooling Supply and the Structure of Production: Evidence from US States 1950-1990
Citation Type: Working Paper
Publication Year: 2011
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Abstract: We find that over the period 1950-1990, US states absorbed increases in the supply of schooling dueto tighter compulsory schooling and child labor laws mostly through within-industry increases in theschooling intensity of production. Shifts in the industry composition towards more schooling-intensiveindustries played a less important role. To try and understand this finding theoretically, we considera free trade model with two goods/industries, two skill types, and many regions that produce a fixedrange of differentiated varieties of the same goods. We find that a calibrated version of the model canaccount for shifts in schooling supply being mostly absorbed through within-industry increases inthe schooling intensity of production even if the elasticity of substitution between varieties is substantiallyhigher than estimates in the literature.
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Authors: Peri, Giovanni; Ciccone, Antonio
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Publication Number: 17683
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Publisher Location: Cambridge, MA
Data Collections: IPUMS USA
Topics: Education, Other
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