PT - JOURNAL ARTICLE AU - Russell Weinstein TI - Local Labor Markets and Human Capital Investments AID - 10.3368/jhr.58.1.1119-10566R2 DP - 2020 Aug 06 TA - Journal of Human Resources PG - 1119-10566R2 4099 - http://jhr.uwpress.org/content/early/2020/08/11/jhr.58.1.1119-10566R2.short 4100 - http://jhr.uwpress.org/content/early/2020/08/11/jhr.58.1.1119-10566R2.full AB - I study whether human capital investments are based on local rather than national demand, using two positive and two negative shocks with differential local effects: the dot-com crash, the fracking boom, the 2008 financial crisis, and the shock making Delaware a financial headquarters. I find impacts on the share of sector-relevant degrees awarded following these shocks, on average across the U.S. However, universities in areas more exposed to sectoral shocks experience greater changes in sector-relevant majors. Differential impacts on major choice at the most exposed universities account for 15%–45% of the overall national effect on sector-relevant degrees.