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Higher Education Supply, Neighbourhood effects and Economic Welfare

Author

Listed:
  • Elena Cottini

    () (Universita' Cattolica di Milano)

  • Paolo Ghinetti

    (Universita' del Piemonte Orientale)

  • Simone Moriconi

    () (IÉSEG School of Management and LEM-CNRS (UMR 9221))

Abstract

This paper estimates neighbourhood effects in the local provision of higher education, and incorporates them in a welfare analysis of higher education supply. We use an own built dataset on the history of higher education institutions in Italy during 1861-2010 to implement an instrumental variables approach that exploits initial conditions in the pre-unitarian Italian states, interacted with post-unification comprehensive reforms of the university system. We provide robust evidence of local displacement between higher education supply in neighbouring provinces. These effects are mostly concentrated within the same field of study, the same region, and a spatial reach of 90 Km. We show that accounting for these displacement forces is important to evaluate the local economic returns of higher education supply. On average, higher education returns explain more than 4% of local value added per capita. Returns are very localised, and larger in provinces that host university hubs.

Suggested Citation

  • Elena Cottini & Paolo Ghinetti & Simone Moriconi, 2019. "Higher Education Supply, Neighbourhood effects and Economic Welfare," Working Papers 2019-EQM-05, IESEG School of Management.
  • Handle: RePEc:ies:wpaper:e201719
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    References listed on IDEAS

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    2. David De La Croix & Frédéric Docquier & Alice Fabre & Robert Stelter, 2019. "The Academic Market And The Rise Of Universities In Medieval And Early Modern Europe (1000-1800)," LIDAM Discussion Papers IRES 2019019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Sebastiano Della Lena & Fabrizio Panebianco, 2019. "Cultural Transmission with Incomplete Information: Parental Perceived Efficacy and Group Misrepresentation," DISCE - Working Papers del Dipartimento di Economia e Finanza def079, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    : : neighbourhood effects; higher education supply; historical data; initial conditions; economic welfare.;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • N00 - Economic History - - General - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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