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Natural Resources, Demand for Skills, and Schooling Choices

Author

Listed:
  • Bütikofer, Aline

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Dalla-Zuanna, Antonio

    (Bank of Italy)

  • Salvanes, Kjell Gunnar

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short-term and long-term effects for a broad set of educational margins, by comparing individuals in regions exposed to the new sector with individuals in unexposed regions. Importantly, we analyze how the effects and the mechanisms change as the sector develops. Our results indicate that an initial increase in the high school dropout rate is short-lived both because dropouts get their degrees later as adults, and because later-born cohorts adapt to the new needs of the industry by enrolling more in vocational secondary education. We also observe a decrease in academic high school and college enrollment except for engineering degrees. Financial incentives to both completing high school and field of study, are the most likely channels driving these effects.

Suggested Citation

  • Bütikofer, Aline & Dalla-Zuanna, Antonio & Salvanes, Kjell Gunnar, 2023. "Natural Resources, Demand for Skills, and Schooling Choices," Discussion Paper Series in Economics 15/2023, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2023_015
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    More about this item

    Keywords

    Natural Resources; Education; Petroleum;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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