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The Effect of University Openings on Local Human Capital Formation: Difference-in-Differences Evidence from Germany

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  • Benedikt Siegler
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    Abstract

    Between 1960 and 1979, 93 new universities opened in Germany. Using this large tertiary education expansion, I estimate the effect of a university opening on the probability of obtaining a university degree in the local population. I exploit the geographical variation in local university access in a difference-in-differences approach by comparing age cohorts in counties that were and were not affected by the opening. Results show that a new university increases the share of university graduates in a county by 8 to 10 percentage points. The effect seems to be mainly driven my females and immigrants.

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    File URL: http://www.bgpe.de/texte/DP/124_Siegler.pdf
    File Function: First version, 2012
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    Bibliographic Info

    Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 124.

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    Length: 39 pages
    Date of creation: Aug 2012
    Date of revision:
    Handle: RePEc:bav:wpaper:124_siegler

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    Web page: http://www.bgpe.de/
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    Related research

    Keywords: tertiary education; education expansion; difference-in-differences; natural experiment; new university opening;

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    References

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    1. Spiess, C. Katharina & Wrohlich, Katharina, 2010. "Does distance determine who attends a university in Germany?," Economics of Education Review, Elsevier, vol. 29(3), pages 470-479, June.
    2. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    3. Janet Currie & Enrico Moretti, 2003. "Mother'S Education And The Intergenerational Transmission Of Human Capital: Evidence From College Openings," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1495-1532, November.
    4. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March.
    5. Regina Riphahn & Florian Schieferdecker, 2012. "The transition to tertiary education and parental background over time," Journal of Population Economics, Springer, vol. 25(2), pages 635-675, January.
    6. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 629-62, September.
    7. Falck, Oliver & Fritsch, Michael & Heblich, Stephan, 2010. "The Phantom of the Opera: Cultural Amenities, Human Capital, and Regional Economic Growth," IZA Discussion Papers 5065, Institute for the Study of Labor (IZA).
    8. Frenette, Marc, 2009. "Do universities benefit local youth? Evidence from the creation of new universities," Economics of Education Review, Elsevier, vol. 28(3), pages 318-328, June.
    9. Susan Dynarski, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," NBER Working Papers 7756, National Bureau of Economic Research, Inc.
    10. Viktor Steiner & Katharina Wrohlich, 2012. "Financial Student Aid and Enrollment in Higher Education: New Evidence from Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 124-147, 03.
    11. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
    12. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
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