Monday, March 7, 2011

Krugman flips the script on education and growth

From today's NYT.

Krugman notes that the outsourcing of low-education jobs may be reaching a plateau, and that outsourcing of high-ed jobs may be speeding up. If so, strong education policy may not be the golden ticket to growth. Interesting perspective. I buy the "hole in the middle" argument, though I'm not sure I buy the idea that high-tech or high-ed jobs are "more offshorable". I haven't yet read the Blinder and Krueger paper, but it seems there's a parallel between these ideas and traded goods vs. non-traded goods. Which types of labor are easily outsourced to the lowest and/or most educated bidder?

How might this affect the college premium? The grad school premium? Will the effects vary by discipline? What might this do to the demand for certain college majors in the U.S.?

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