Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185121 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11661
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several cities in Norway, resulting from the construction of new colleges in the 1970s. We find that skilled wages increased as a response, suggesting that along with an increase in the supply there was also an increase in demand for skill. We also show that college openings led to an increase in the productivity of skilled labor and investments in R&D. Our findings are consistent with models of endogenous technical change where an abundance of skilled workers may encourage firms to adopt skill-complementary technologies, leading to an upward-sloping long-run demand for skill.
Subjects: 
endogenous technical change
college reform
JEL: 
J23
J24
Document Type: 
Working Paper

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