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Do universities benefit local youth? Evidence from the creation of new universities

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  • Frenette, Marc

Abstract

In this study, I examine university and college participation rates, as well as graduate outcomes, following the establishment of a university in cities where there were previously none. The creation of a local university is associated with a large increase in university attendance among local youth in each affected city. However, the increase in university participation came at the expense of college participation in most cities. Furthermore, not everyone benefited equally from new universities in terms of university enrolment. In the short run, the creation of a local university is associated with a substantial increase in the probability of moving out of one city for men and women. For men, employment rates rise, while for women, there is an increase in business services and public sector employment.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 28 (2009)
Issue (Month): 3 (June)
Pages: 318-328

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Handle: RePEc:eee:ecoedu:v:28:y:2009:i:3:p:318-328

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: University participation Distance to school University infrastructure;

References

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  1. Thomas J. Kane & Cecilia E. Rouse, 1993. "Labor Market Returns to Two- and Four-Year Colleges: Is a Credit a Credit and Do Degrees Matter?," NBER Working Papers 4268, National Bureau of Economic Research, Inc.
  2. Drolet, Marie, 2005. "Participation in Post-secondary Education in Canada: Has the Role of Parental Income and Education Changed over the 1990s?," Analytical Studies Branch Research Paper Series 2005243e, Statistics Canada, Analytical Studies Branch.
  3. Marc Frenette, 2004. "Access to College and University: Does Distance to School Matter?," Canadian Public Policy, University of Toronto Press, vol. 30(4), pages 427-443, December.
  4. Groen, J.A.Jeffrey A., 2004. "The effect of college location on migration of college-educated labor," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 125-142.
  5. Frenette, Marc, 2005. "Is Post-secondary Access More Equitable in Canada or the United States?," Analytical Studies Branch Research Paper Series 2005244e, Statistics Canada, Analytical Studies Branch.
  6. Henry S. Farber & Jeffrey R. Kling & Alan Krueger, 1999. "Interpreting Instrumental Variables Estimates of the Returns to Schooling," Working Papers 794, Princeton University, Department of Economics, Industrial Relations Section..
  7. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
  8. Do, Chau, 2004. "The effects of local colleges on the quality of college attended," Economics of Education Review, Elsevier, vol. 23(3), pages 249-257, June.
  9. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
  10. Zhao, John & Lipps, Garth & Corak, Miles, 2003. "Family Income and Participation in Post-secondary Education," Analytical Studies Branch Research Paper Series 2003210e, Statistics Canada, Analytical Studies Branch.
  11. Marc Frenette, 2006. "Too Far to Go On? Distance to School and University Participation," Education Economics, Taylor & Francis Journals, vol. 14(1), pages 31-58.
  12. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
  13. Frenette, Marc, 2007. "Do Universities Benefit Local Youth? Evidence from University and College Participation, and Graduate Earnings Following the Creation of a New University," Analytical Studies Branch Research Paper Series 2006283e, Statistics Canada, Analytical Studies Branch.
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Citations

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Cited by:
  1. Flannery, Darragh & O’Donoghue, Cathal, 2013. "The demand for higher education: A static structural approach accounting for individual heterogeneity and nesting patterns," Economics of Education Review, Elsevier, vol. 34(C), pages 243-257.
  2. Toivanen, Otto & Väänänen, Lotta, 2011. "Education and Invention," CEPR Discussion Papers 8537, C.E.P.R. Discussion Papers.
  3. Spiess, C. Katharina & Wrohlich, Katharina, 2008. "Does Distance Determine Who Attends a University in Germany?," IZA Discussion Papers 3615, Institute for the Study of Labor (IZA).
  4. Benedikt Siegler, 2012. "The Effect of University Openings on Local Human Capital Formation: Difference-in-Differences Evidence from Germany," Working Papers 124, Bavarian Graduate Program in Economics (BGPE).
  5. Julian Betts & Christopher Ferrall & Ross Finnie, 2013. "The Role of University Characteristics in Determining Post-Graduation Outcomes: Panel Evidence from Three Canadian Cohorts," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 81-106, May.
  6. Driouchi, Ahmed & Zouag, Nada, 2011. "Local Universities as Engines for Innovation and Regional Development in Southern Economies with Reference to MOROCCO," MPRA Paper 30705, University Library of Munich, Germany.
  7. Denzler, Stefan & Wolter, Stefan C., 2011. "Too Far to Go? Does Distance Determine Study Choices?," IZA Discussion Papers 5712, Institute for the Study of Labor (IZA).
  8. Bjarne Strøm & Torberg Falch & Päivi Lujala, 2011. "Geographical constraints and educational attainment," Working Paper Series 11811, Department of Economics, Norwegian University of Science and Technology.
  9. Frenette, Marc, 2011. "Is Debt Relief as Good as Liquidity? The Impact of Prospective Student Debt on Post-Secondary Attendance among Low-Income Youth," CLSSRN working papers clsrn_admin-2011-7, Vancouver School of Economics, revised 29 Mar 2011.
  10. Stefan Denzler & Stefan C. Wolter, 2010. "Wenn das Nächstgelegene die erste Wahl ist – Der Einfluss der geographischen Mobilität der Studierenden auf die Hochschullandschaft Schweiz," Economics of Education Working Paper Series 0048, University of Zurich, Institute for Strategy and Business Economics (ISU).
  11. Cory Koedel, 2009. "Postsecondary Education Structure," Working Papers 0906, Department of Economics, University of Missouri, revised 04 Oct 2010.
  12. Ronny Freier & Johanna Storck, 2012. "The Treatment Effect of Attending a High-Quality School and the Influence of Unobservables," Discussion Papers of DIW Berlin 1256, DIW Berlin, German Institute for Economic Research.

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