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Are College Graduates More Responsive to Distant Labor Market Opportunities?

Are College Graduates More Responsive to Distant Labor Market Opportunities? Are highly educated workers better at locating in areas with high labor demand? To answer this question, I use three decades of U.S. Census data to estimate a McFadden-style model of residential location choice. I test for education differentials in the likelihood that young workers reside in states experiencing positive labor demand shocks at the time these workers entered the labor market. I find effects of changes in state labor demand on college graduate location choice that are several times greater than for high school graduates. Nevertheless, medium-run wage effects of entry labor market conditions for college graduates equal or exceed those of less-educated workers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

Are College Graduates More Responsive to Distant Labor Market Opportunities?

Journal of Human Resources , Volume 45 (4) – Apr 4, 2012

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Publisher
University of Wisconsin Press
ISSN
1548-8004

Abstract

Are highly educated workers better at locating in areas with high labor demand? To answer this question, I use three decades of U.S. Census data to estimate a McFadden-style model of residential location choice. I test for education differentials in the likelihood that young workers reside in states experiencing positive labor demand shocks at the time these workers entered the labor market. I find effects of changes in state labor demand on college graduate location choice that are several times greater than for high school graduates. Nevertheless, medium-run wage effects of entry labor market conditions for college graduates equal or exceed those of less-educated workers.

Journal

Journal of Human ResourcesUniversity of Wisconsin Press

Published: Apr 4, 2012

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