Data for: Human capital accumulation in a federation

Abstract of associated article: More than half of the variation across U.S. school districts in real K-12 education expenditures per student is due to differences between, rather than within, states. I study the welfare implications of redistribution of education expenditures by the Federal government, using an analytically tractable model of human capital accumulation with heterogeneous agents and endogenous state policies. The net welfare effect of Federal redistribution depends on a trade-off between the positive effect of redistributing resources toward poorer states and the negative effect resulting from misallocation of population across states. Federal redistribution increases welfare in a calibrated version of the model

Make yourselves scarce: The effect of demographic change on the relative wages and employment rates of experienced workers

This paper studies the impact of demographic change on experienced workers’ relative wages and employment rates. We investigate empirical predictions from aframework of supply and demand for experience skill, using variation across U.S. local labor markets (LLMs) over the last decades and instrumenting experienceskill supply by the LLMs’ age structures a decade earlier. We find that aging substantially reduces experienced workers’ relative wages and full-time employmentrates, and also their labor market participation rates. Our results imply that the effect of demographic change on labor markets might be more severe than previously recognized, as it reaches beyond wages