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Do colleges and universities increase their region's human capital?

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Abstract
We investigate whether the degree production and research and development (R&D) activities of colleges and universities are related to the amount and types of human capital present in the metropolitan areas where the institutions are located. We find that degree production has only a small positive relationship with local stocks of human capital, suggesting that migration plays an important role in the geographic distribution of human capital. Moreover, we show that spillovers from academic R&D activities tilt the structure of local labor markets toward occupations requiring innovation and technical training. These findings demonstrate that colleges and universities raise local human capital levels by increasing both the supply of and demand for skill.

Suggested Citation

  • Jaison R. Abel & Richard Deitz, 2009. "Do colleges and universities increase their region's human capital?," Staff Reports 401, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednsr:401
    Note: For a published version of this report, see Jaison R. Abel and Richard Deitz, "Do Colleges and Universities Increase Their Region's Human Capital?" Journal of Economic Geography 12, no. 2 (May 2012): 667-91.
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    Keywords

    human capital; higher education; knowledge spillovers; local economic development;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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