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The Indirect Effects of Educational Expansions: Evidence from a Large Enrollment Increase in University Majors

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  • Nicola Bianchi

Abstract

Increasing access to education may have consequences that go beyond effects on marginal students encouraged to enroll. It may change peer effects, school quality, and returns to skill. This paper studies how classmates and teaching inputs affect learning of university students, exploiting an educational expansion in Italian STEM majors. Newly collected data on 27,236 students indicate that less prepared classmates and congestion of teaching resources lowered learning of incumbent students in STEM fields. Their learning, however, increased in courses in which the new classmates raised average preparedness. These effects might have had long-lasting consequences on the returns to STEM degrees.

Suggested Citation

  • Nicola Bianchi, 2020. "The Indirect Effects of Educational Expansions: Evidence from a Large Enrollment Increase in University Majors," Journal of Labor Economics, University of Chicago Press, vol. 38(3), pages 767-804.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/706050
    DOI: 10.1086/706050
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    Cited by:

    1. Matthias Westphal & Daniel A Kamhöfer & Hendrik Schmitz, 2022. "Marginal College Wage Premiums Under Selection Into Employment," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2231-2272.
    2. Tilley, J. Lucas, 2023. "School resources, peer inputs, and student outcomes in adult education," Economics of Education Review, Elsevier, vol. 96(C).
    3. Esperanza Vera-Toscano & Elena C. Meroni, 2021. "An Age–Period–Cohort Approach to the Incidence and Evolution of Overeducation and Skills Mismatch," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 711-740, January.
    4. Valentin Schiele, 2022. "Labor market spillover effects of a compulsory schooling reform in Germany," Working Papers Dissertations 84, Paderborn University, Faculty of Business Administration and Economics.
    5. Molina, Teresa & Rivadeneyra, Ivan, 2021. "The schooling and labor market effects of eliminating university tuition in Ecuador," Journal of Public Economics, Elsevier, vol. 196(C).
    6. Michael Gilraine & Hugh Macartney & Robert McMillan, 2020. "Estimating the Direct and Indirect Effects of Major Education Reforms," Working Papers tecipa-673, University of Toronto, Department of Economics.

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