Human Capital and Regional Resilience: Nevada Computable General Equilibrium Approach

ABSTRACT This paper analyzes the long‐term economic impacts of workforce development initiatives designed to address skill mismatch in Nevada's labor market, driven by automation shock and rising demand for skilled labor. Two key programs—Career Technical Education and the Governor Guinn Millennium Scholarship—aim to improve educational attainment and job readiness, ensuring a stable supply of skilled workers. Using a Computable General Equilibrium (CGE) model, we simulate six policy scenarios reflecting varying levels of educational attainment and workforce upskilling. Results show these programs significantly boost high school and post‐secondary graduation rates, increase Gross State Product (GSP), and modestly reduce income inequality. In the best‐case scenario, cumulative household income rises by $9.1 billion, with an annual GSP increase of 0.164% over 30 years. All scenarios, however, experience short‐term output contractions due to temporary labor supply reductions during upskilling periods. Reductions in occupational income disparities are modest, highlighting the need for broader program reach. The study underscores the importance of sustained investment in inclusive, scalable education and training programs, particularly for future workforce facing the automation challenges. Aligning workforce strategies with evolving labor demands is essential for strengthening Nevada's economic resilience and adaptability amid ongoing technological and industrial transformation.