Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283977 
Year of Publication: 
2023
Series/Report no.: 
Upjohn Institute Working Paper No. 23-382
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in education investments of high school students, where they invest less in vocational-trades education and increasingly invest in college education. Our results highlight that labor demand changes impact inequality in the next generation. Low-ability and low-SES students are most responsive to task-biased demand changes and, as a result, intergenerational mobility in college education increases.
Subjects: 
Local labor markets
routine tasks
task-biased demand change
human capital
college
intergenerational mobility
JEL: 
I24
J23
J24
J62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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