Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109489
Authors: 
Ciccone, Antonio
Peri, Giovanni
Year of Publication: 
2013
Series/Report no.: 
ADB Economics Working Paper Series 377
Abstract: 
We find that over the period 1950–1990, states in United States absorbed increases in the supply of schooling due to tighter compulsory schooling and child labor laws mostly through within-industry increases in the schooling intensity of production. Shifts in the industry composition towards more schooling-intensive industries played a less important role. To try and understand this finding theoretically, we consider a free trade model with two goods/industries, two skill types, and many regions that produce a fixed range of differentiated varieties of the same goods. We find that a calibrated version of the model can account for shifts in schooling supply being mostly absorbed through within-industry increases in the schooling intensity of production even if the elasticity of substitution between varieties is substantially higher than estimates in the literature.
Subjects: 
human capital
skills
schooling
labor demand
United States
JEL: 
E24
I20
J23
J24
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

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