Upjohn Author ORCID Identifier
Publication Date
4-2024
Series
Upjohn Institute working paper ; 24-400
DOI
10.17848/wp24-400
Abstract
How does postsecondary human capital investment respond to changes in labor market skill demand? We quantify the magnitude and nature of this response in the U.S. 4-year sector. To do so, we develop a new measure of institution-major-specific labor demand, and corresponding shift-share instrument, that combines job ads with alumni locations. We find that postsecondary human capital investments meaningfully respond. We estimate elasticities for degrees and credits centered around 1.3, generally increasing with time horizon. We provide evidence that both student demand and institutional supply-side constraints matter. Our findings illuminate the nature of educational production in higher education.
Issue Date
April 2024
Note
Upjohn project #69115
Sponsorship
National Science Foundation (Collaborative Grant #1919387), Russell Sage Foundation (Grant #1811-09737), and Institute of Education Sciences (Grant R305B150012).
Subject Areas
EDUCATION; Postsecondary education; LABOR MARKET ISSUES; Job search
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Citation
Conzelmann, Johnathan G., Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Andrew Simon, and Kevin M. Stange. 2024. "Skills, Majors, and Jobs: Does Higher Education Respond?" Upjohn Institute Working Paper 24-400. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp24-400