Skill-Biased Technical Change and the Cost of Higher Education

A-Tier
Journal: Journal of Labor Economics
Year: 2016
Volume: 34
Issue: 3
Pages: 621 - 662

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We document the growth in higher education costs and tuition over the past 50 years. To explain these trends, we develop a general equilibrium model with skill- and sector-biased technical change. Finding the model's parameters through a combination of estimation and calibration, we show that it can explain the rise in college costs between 1961 and 2009, along with the increase in college attainment and the change in the relative earnings of college graduates. The model predicts that if college costs had ceased to grow after 1961, enrollment in 2010 would have been 3%–6% higher.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/684856
Journal Field
Labor
Author Count
2
Added to Database
2026-01-25