The question of this analysis is how the production of college graduates at the state level affects the stock of college-educated workers in the state. The potential mobility of skilled workers implies that the number of college students graduating in an area need not affect the number of college graduates living in the area. However, the production of relatively large numbers of college graduates in a state may lead to increases in the employment of university-trained manpower if industries expand production of goods and services that use college-educated workers intensively. We find at best only a modest link between the production and stock of baccalaureate degree recipients. (C) 2003 Published by Elsevier B.V.