The first chapter provides an introduction to my investigation of the impact of state-level educational investments in public K-12 education on future labor markets, specifically earnings and employment. In Chapter 2, the current literature supporting this investigation is examined while I offer a hole in the literature that I intend to fill. Then, in Chapter 3 I present a two-period, balanced-budget theoretical model in which I relate educational investments, mobility, and future earnings. This theoretical model is then implemented in Chapter 4 using state-level data and again in Chapter 5 using individual-level data.
Chapter 4 examines the impact of state-level educational investments in public education on aggregate state labor markets, specifically earnings and employment. Using data on K-12 educational spending, 8th grade cognitive test scores, and educational demographics of a state’s labor force, I observe the impact these state-level investments have on employment and earnings growth. Taking interstate migration into account, I separate the benefits from educational investment into benefits due to in-state investment and benefits due to out-of-state investment. By doing so I am able to identify whether or not educational investment spillovers exist between states. Results indicate that the earnings benefits associated with public K-12 educational spending spill over into other states, 8th grade NAEP test scores do not spill over into other states, and neither has a significant impact on other states’ employment growth.
Chapter 5 examines the impact of educational investments in public education on earnings of individuals. I extend my analysis from Chapter 4 by employing micro-data (on individuals) from the American Community Survey (ACS) instead of using state-level data. Using micro-data allows me to more accurately measure the investments used in the education of an area and to incorporate where education was attained and where it was employed. Using individual-level data also allows me to narrow my focus to younger participants in the labor force, providing a stronger link between lagged educational spending and earnings. Results indicate that K-12 educational spending does spill over in the form of positive earnings benefits, which helps to support the results of Chapter 4.
| Identifer | oai:union.ndltd.org:uky.edu/oai:uknowledge.uky.edu:economics_etds-1030 |
| Date | 01 January 2017 |
| Creators | Nietfeld, Carla J. |
| Publisher | UKnowledge |
| Source Sets | University of Kentucky |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | Theses and Dissertations--Economics |
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