College of Education Events

Back to Listing

Local Labor Markets and Human Capital Investments by Russell Weinstein, Assistant Professor, UIUC Labor Employment Relations and Economics

Event Type
Lecture
Sponsor
Higher Education Collaborative
Location
Education building, Room 333
Date
Dec 5, 2017   12:00 - 1:00 pm  
Contact
Jennifer Delaney
E-Mail
delaneyj@illinois.edu
Views
3

This paper studies whether human capital investments are based on local rather than national demand, using three shocks with differential local effects: the dot-com crash, the 2008 financial crisis, and the shock making Delaware a financial headquarters. Event-study analyses show universities more exposed to sectoral shocks experience greater changes in sector-relevant majors. Using students' home and university locations and nearest-neighbor matching, this paper develops a test for whether information frictions explain this local elasticity, separately from migration frictions. Information frictions do not appear to explain the result. Findings are consistent with migration frictions, implying encouraging investments based on national demand may increase mismatch.

link for robots only