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Free movement of workers and native demand for tertiary education

Author

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  • Bachli, Mirjam

    (University of St.Gallen)

  • Tsankova, Teodora

    (Tilburg University and CAGE)

Abstract

We investigate how the introduction of free movement of workers affects enrolment of natives in tertiary education. In a difference-in-differences framework, we exploit a policy change that led to a significant increase in the share of cross-border commuters in local employment in border regions of Switzerland. Our results show a rise in enrolment at Universities of Applied Sciences in affected relative to non-affected regions in the post-reform period but no change in enrolment at traditional universities. Furthermore, we find that enrolment increases in non-STEM fields that build skills less transferable across national borders. This allows for complementarities with foreign workers who are more likely to hold occupations requiring STEM training. Individuals with a labor market oriented education such as vocationally trained respond to the increase in labor market competition because they have employment opportunities and access to tertiary education through Universities of Applied Sciences.

Suggested Citation

  • Bachli, Mirjam & Tsankova, Teodora, 2020. "Free movement of workers and native demand for tertiary education," CAGE Online Working Paper Series 515, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:515
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp515.2020.pdf
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    More about this item

    Keywords

    cross-border commuting; demand for tertiary education; study field choice; labor market conditions JEL Classification: F22; I26; J24; J61; R23;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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