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Are College Graduates More Responsive to Distant Labor Market Opportunities?
- Journal of Human Resources
- University of Wisconsin Press
- Volume 45, Number 4, Fall 2010
- pp. 944-970
- 10.1353/jhr.2010.0030
- Article
- Additional Information
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Are highly educated workers better at locating in areas with high labor demand? To answer this question, I use three decades of U.S. Census data to estimate a McFadden-style model of residential location choice. I test for education differentials in the likelihood that young workers reside in states experiencing positive labor demand shocks at the time these workers entered the labor market. I find effects of changes in state labor demand on college graduate location choice that are several times greater than for high school graduates. Nevertheless, medium-run wage effects of entry labor market conditions for college graduates equal or exceed those of less-educated workers.