IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Are there returns from university location in a state-funded university system?

  • Suhonen, Tuomo
Registered author(s):

    A location in an economically active, high-amenity region could in many ways be a significant advantage for a university and its students and thus could also be positively linked to students' subsequent earnings. Based on this hypothesis, the present study empirically examines the effect of university location choice on earnings in Finland, focusing on the following question: To what extent does the choice of university location explain the observed positive early-career earnings premium for students graduating from the Helsinki metropolitan area rather than from one of the nine other university cities? The results suggest that no positive average earnings premium exists for metro area graduates after differences in students' pre-university characteristics are taken into account. However, the metro area university premium is found to be, to some extent, heterogeneous across fields and regional labour markets. The findings also indicate the importance of accounting for the selective nature of individuals' migration behaviour when conditioning on post-university region in the estimation of university location effects.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 43 (2013)
    Issue (Month): 3 ()
    Pages: 465-478

    in new window

    Handle: RePEc:eee:regeco:v:43:y:2013:i:3:p:465-478
    Contact details of provider: Web page:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Michael Storper & Allen J. Scott, 2009. "Rethinking human capital, creativity and urban growth," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 147-167, March.
    2. Zimmerman, David J., 1999. "Peer Effects in Academic Outcomes: Evidence From a Natural Experiment," Williams Project on the Economics of Higher Education DP-52, Department of Economics, Williams College.
    3. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
    4. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-85, November.
    5. Dan Black & Natalia Kolesnikova & Lowell J. Taylor, 2007. "Earnings functions when wages and prices vary by location," Working Papers 2007-031, Federal Reserve Bank of St. Louis.
    6. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," RCER Working Papers 488, University of Rochester - Center for Economic Research (RCER).
    7. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
    8. Stacy Berg Dale & Alan Krueger, 1998. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," Working Papers 788, Princeton University, Department of Economics, Industrial Relations Section..
    9. Brad J. Hershbein, 2013. "Worker Signals among New College Graduates: The Role of Selectivity and GPA," Upjohn Working Papers and Journal Articles 13-190, W.E. Upjohn Institute for Employment Research.
    10. Brunello, Giorgio & Cappellari, Lorenzo, 2008. "The labour market effects of Alma Mater: Evidence from Italy," Economics of Education Review, Elsevier, vol. 27(5), pages 564-574, October.
    11. Mark Hoekstra, 2009. "The Effect of Attending the Flagship State University on Earnings: A Discontinuity-Based Approach," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 717-724, November.
    12. M. C. Burda, 1995. "Migration and the Option Value of Waiting," SFB 373 Discussion Papers 1995,58, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    13. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
    14. Mika Haapanen & Hannu Tervo, 2012. "Migration Of The Highly Educated: Evidence From Residence Spells Of University Graduates," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 587-605, October.
    15. Arnaud Chevalier & Gavan Conlon, 2003. "Does it pay to attend a prestigious university?," LSE Research Online Documents on Economics 19477, London School of Economics and Political Science, LSE Library.
    16. Lena Lindahl & Hakan Regnér, 2005. "College Choice and Subsequent Earnings: Results Using Swedish Sibling Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 437-457, 09.
    17. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
    18. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct.
    19. Bruce Sacerdote, 2000. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," NBER Working Papers 7469, National Bureau of Economic Research, Inc.
    20. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    21. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    22. Alessandra Faggian & Philip Mccann, 2009. "Universities, Agglomerations And Graduate Human Capital Mobility," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 210-223, 04.
    23. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
    24. Dominic J. Brewer & Eric R. Eide & Ronald G. Ehrenberg, 1999. "Does It Pay to Attend an Elite Private College? Cross-Cohort Evidence on the Effects of College Type on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 104-123.
    25. Monks, James, 2000. "The returns to individual and college characteristics: Evidence from the National Longitudinal Survey of Youth," Economics of Education Review, Elsevier, vol. 19(3), pages 279-289, June.
    26. Hakkinen, Iida, 2006. "Working while enrolled in a university: does it pay?," Labour Economics, Elsevier, vol. 13(2), pages 167-189, April.
    27. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
    28. McHenry, Peter, 2011. "The effect of school inputs on labor market returns that account for selective migration," Economics of Education Review, Elsevier, vol. 30(1), pages 39-54, February.
    29. Kevin Lang & Erez Siniver, 2011. "Why Is an Elite Undergraduate Education Valuable? Evidence from Israel," NBER Working Papers 16730, National Bureau of Economic Research, Inc.
    30. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
    31. Long, Mark C., 2008. "College quality and early adult outcomes," Economics of Education Review, Elsevier, vol. 27(5), pages 588-602, October.
    32. Holmlund, Linda, 2009. "The Effect of College Quality on Earnings Evidence from Sweden," Umeå Economic Studies 781, Umeå University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:43:y:2013:i:3:p:465-478. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.