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Title: The Geographic Distribution of Human Capital: Measurement of Contributing Mechanisms

Citation Type: Miscellaneous

Publication Year: 2008

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Abstract: This paper investigates the evolution and determinants of human capital at the local labor market level. Using a combination of U.S. data sets, I decompose generation-to-generation changes in local human capital into three factors: the previous generations human capital, intergenerational transmission of skills from parents in the previous generation to their children, and migration of the children. I measure skills with a prediction of earnings conditional on individual characteristics and use county groups called commuting zones as local labor markets. I find evidence of regression to the mean of local skills through intergenerational transmission, but selective migration allocates skills back toward local labor markets with high skills in the previous generation. Labor market size, climate, local colleges, and taxes affect local skill measures. Skills move from urban to rural labor markets through intergenerational transmission but from rural to urban labor markets through migration. Amenities are negatively correlated with local skill levels. Local supply of college services is positively correlated with local skill levels.

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Authors: McHenry, Peter

Publisher: College of William and Mary

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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