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

  • Frenette, Marc

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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File URL: http://www.sciencedirect.com/science/article/B6VB9-4THC1H2-1/2/fd59c58beb80bcf952f4b9462153a287
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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
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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  1. 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.
  2. 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.
  3. Jeffrey R. Kling, 2000. "Interpreting Instrumental Variables Estimates of the Returns to Schooling," NBER Working Papers 7989, National Bureau of Economic Research, Inc.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. Frenette, Marc, 2002. "Too Far to Go on? Distance to School and University Participation," Analytical Studies Branch Research Paper Series 2002191e, Statistics Canada, Analytical Studies Branch.
  12. 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.
  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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