The Production and Stock of College Graduates for U.S. States

Upjohn Institute, Working Paper, 15-246, 2015

45 Pages Posted: 10 Dec 2015

See all articles by John V. Winters

John V. Winters

Iowa State University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 2015

Abstract

The stock of human capital in an area is important for regional economic growth and development. However, highly educated workers are often quite mobile, and there is a concern that public investments in college graduates may not benefit the state if the college graduates leave the state after finishing their education. This paper examines the relationship between the production of college graduates from a state and the stock of college graduates residing in the state using microdata from the decennial census and American Community Survey. The relationship is examined across states and across cohorts within states. The descriptive analysis suggests that the relationship between the production and stock of college graduates has increased over time and is nearly proportional in recent years. Instrumental variables methods are used to estimate causal effects. The preferred instrumental variables results yield an average point estimate for the production-stock relationship of 0.52, but the effect likely decreases with age.

Keywords: college graduates, human capital, migration, higher education policy

JEL Classification: I25, J24, R23

Suggested Citation

Winters, John V., The Production and Stock of College Graduates for U.S. States (December 2015). Upjohn Institute, Working Paper, 15-246, 2015, Available at SSRN: https://ssrn.com/abstract=2701280 or http://dx.doi.org/10.2139/ssrn.2701280

John V. Winters (Contact Author)

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

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