%0 Report
        %A Weinstein, Russell
        %T Local Labor Markets and Human Capital Investments
        %D 2017
        %8 2017 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 10598
        %U https://www.iza.org/publications/dp10598
        %X I study whether human capital investments are based on local rather than national demand, and whether this is explained by migration or information frictions. I analyze three sector-specific shocks with differential local effects, including the dot-com crash, the 2008 financial crisis, and a shock transforming Delaware into an international financial center. I find universities in areas more exposed to sectoral shocks experience greater changes in sector-relevant majors. Using rich student-level data, I find this is not explained by information frictions, but more likely by migration frictions. The results suggest encouraging human capital investments based on national demand may increase mismatch.
        %K information frictions
%K migration frictions
%K local labor markets
%K college major choice