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Globalization and Investment in Human Capital

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Abstract

Workers are becoming increasingly concerned about the impact that globalization has on their domestic labor market. While existing research typically focuses on the effects on labor market outcomes such as wages and employment, we examine whether American workers respond to globalization by increasing their investment in human capital. Specifically, we measure the extent to which offshoring and immigration affect enrollment at institutions of higher education. The results indicate that both offshoring and immigration increase enrollment at community colleges, particularly among older students. We conclude that workers in the U.S. are responding to offshoring and immigration by acquiring the skills necessary to compete in a global economy.

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  • Daniel C. Hickman & William W. Olney, 2010. "Globalization and Investment in Human Capital," Department of Economics Working Papers 2010-16, Department of Economics, Williams College.
  • Handle: RePEc:wil:wileco:2010-16
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    More about this item

    Keywords

    Globalization; Higher education; Enrollment; Offshoring; Immigration;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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