%J Journal of the European Economic Association
%X We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several municipalities in Norway, resulting from the construction of new colleges in the 1970s. We find that skilled wages increased as a response, suggesting that along with an increase in the supply there was also an increase in demand for skill. We also show that college openings led to an increase in the productivity of skilled labor and investments in R&D. Our findings are consistent with models of endogenous technical change where an abundance of skilled workers may encourage firms to adopt skill-complementary technologies.
%K I24 - Education and InequalityJ23 - Labor DemandJ24 - Human Capital; Skills; Occupational Choice; Labor ProductivityO33 - Technological Change: Choices and Consequences; Diffusion Processes
%A Pedro Carneiro
%A kjell salvanes
%A kai liu
%O © The Author(s) 2022. Published by Oxford University Press on behalf of European Economic Association.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/).
%T The Supply of Skill and Endogenous Technical Change: Evidence From a College Expansion Reform
%L discovery10146523
%I Wiley-Blackwell
%D 2022