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Geographic shifts in higher education

  • Yolanda K. Kodrzycki
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    A common complaint of businesses nationwide is that they have not been able to hire as many highly educated workers as they would like to employ, resulting in unfilled vacancies in professional and technical positions. Regardless of the traditional relationships between employers and nearby universities, many states now are reexamining how their higher educational institutions can play a larger role in the development and growth of "knowledge-based" industries. Colleges and universities have an effect on the availability of labor in their local area in a variety of ways, most notably in educating students who may develop work relationships with local companies and in sponsoring research and development that leads to local job opportunities. This article focuses on what is arguably their largest role: supplying new graduates at the bachelor's degree level. The author describes the influences on graduation patterns, documents key trends for major states, and demonstrates their relative importance using regression analysis. Her research suggests the need for coordination of educational policies at the high school and college levels. States that are trying to improve public high schools should also reexamine the capacity and competitiveness of their public college systems. Expanding capacity or lowering charges would entail extra public expenditures, but may also be consistent with broader economic development goals.

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    Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

    Volume (Year): (1999)
    Issue (Month): Jul ()
    Pages: 27-47

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    Handle: RePEc:fip:fedbne:y:1999:i:jul:p:27-47
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    1. John M. Quigley & Daniel L. Rubinfeld, 1993. "Public Choices in Public Higher Education," NBER Chapters, in: Studies of Supply and Demand in Higher Education, pages 243-284 National Bureau of Economic Research, Inc.
    2. Gordon C. Winston & Yen, I.C., 1995. "Costs, Prices, Subsidies, and Aid in U.S. Higher Education," Williams Project on the Economics of Higher Education DP-32, Department of Economics, Williams College.
    3. Beeson, Patricia & Montgomery, Edward B, 1993. "The Effects of Colleges and Universities on Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 753-61, November.
    4. McPherson, Michael S & Schapiro, Morton Owen, 1991. "Does Student Aid Affect College Enrollment? New Evidence on a Persistent Controversy," American Economic Review, American Economic Association, vol. 81(1), pages 309-18, March.
    5. Charles T. Clotfelter, 1996. "Buying the Best: Cost Escalation in Elite Higher Education," NBER Books, National Bureau of Economic Research, Inc, number clot96-1, July.
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