Using Consumer Expenditure Survey data this paper shows that more educated workers demand more high-skill-intensive services and, to a lower extent, more very low-skill-intensive services (such as personal services). Additional evidence at the MSA level shows that this "education elasticity of demand" mechanism can explain part of the correlation between the share of college-educated workers in a city and the employment share of service industries. The parametrization of a simple model suggests that this induced demand shift can explain around 6.5% of the relative demand shift in the US between 1984 and 2002. Similar results are provided for the UK.

The effect of product demand on inequality : evidence from the U.S. and the U.K / M. Leonardi. - In: AMERICAN ECONOMIC JOURNAL. APPLIED ECONOMICS. - ISSN 1945-7782. - 7:3(2015), pp. 221-247.

The effect of product demand on inequality : evidence from the U.S. and the U.K

M. Leonardi
2015

Abstract

Using Consumer Expenditure Survey data this paper shows that more educated workers demand more high-skill-intensive services and, to a lower extent, more very low-skill-intensive services (such as personal services). Additional evidence at the MSA level shows that this "education elasticity of demand" mechanism can explain part of the correlation between the share of college-educated workers in a city and the employment share of service industries. The parametrization of a simple model suggests that this induced demand shift can explain around 6.5% of the relative demand shift in the US between 1984 and 2002. Similar results are provided for the UK.
Settore SECS-P/01 - Economia Politica
2015
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/258005
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