Tight Labor Markets and the Demand for Education: Evidence from the Coal Boom and Bust

@article{Black2005TightLM,
  title={Tight Labor Markets and the Demand for Education: Evidence from the Coal Boom and Bust},
  author={Dan A. Black and Terra McKinnish and Seth Sanders},
  journal={Industrial \& Labor Relations Review},
  year={2005},
  volume={59},
  pages={16 - 3}
}
Human capital theory predicts that individuals acquire less schooling when the returns to schooling are small. To test this theory, the authors study the effect of the Appalachian coal boom on high school enrollments. During the 1970s, a boom in the coal industry increased the earnings of high school dropouts relative to those of graduates. During the 1980s, the boom subsided and the earnings of dropouts declined relative to those of graduates. The authors find that high school enrollment rates… 

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