TY  - RPRT
        AU  - Weinstein, Russell
        TI  - Local Labor Markets and Human Capital Investments
        PY  - 2017/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10598
        UR  - https://www.iza.org/publications/dp10598
        AB  - 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.
        KW  - information frictions
KW  - migration frictions
KW  - local labor markets
KW  - college major choice
        ER  -