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Faculty of Economics

Journal Cover

Carneiro, P., Liu, K. and Salvanes, K. G.

The Supply of Skill and Endogenous Technical Change: Evidence from a College Expansion Reform

Journal of the European Economic Association

Vol. 21(1) pp. 48–92 (2023)

Abstract: We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several municipalities 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.

JEL Codes: I24, J23, J24, O33

Author links: Kai Liu  

Publisher's Link: https://doi.org/10.1093/jeea/jvac032



Papers and Publications



Recent Publications


Bhattacharya, D., Dupas, P. and Kanaya, S. Demand and Welfare Analysis in Discrete Choice Models with Social Interactions Review of Economic Studies, accepted [2023]

Bhattacharya, D. and Shvets, J. Inferring Trade-Offs in University Admissions: Evidence from Cambridge Journal of Political Economy, accepted [2023]

Ding, Y. A Simple Joint Model for Returns, Volatility and Volatility of Volatility Journal of Econometrics [2023]

Chen, J., Elliott, M. and Koh, A. Capability Accumulation and Conglomeratization in the Information Age Journal of Economic Theory [2023]