RT Journal Article
SR Electronic
T1 Local Labor Markets and Human Capital Investments
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 1498
OP 1525
DO 10.3368/jhr.58.1.1119-10566R2
VO 57
IS 5
A1 Weinstein, Russell
YR 2022
UL http://jhr.uwpress.org/content/57/5/1498.abstract
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 United States. 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 percent of the overall national effect on sector-relevant degrees.