Business Intelligence

Globalization And Investment In Human Capital

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Executive Summary

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, the authors examine whether American workers respond to globalization by increasing their investment in human capital. Specifically, they 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.

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