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College Expansion and the Marginal Returns to Education: Evidence from Russia

Author

Listed:
  • Belskaya, Olga

    () (University of North Carolina, Chapel Hill)

  • Peter, Klara Sabirianova

    () (University of North Carolina, Chapel Hill)

  • Posso, Christian

    () (University of North Carolina, Chapel Hill)

Abstract

This paper evaluates whether the expansion of higher education is economically worthwhile based on a recent surge in the number of campuses and college graduates in Russia. Our empirical strategy relies on the marginal treatment effect method in both normal and semi-parametric versions, and estimating policy-influenced treatment parameters for the marginal students who are directly affected by college expansion. We use high-quality panel data with multiple wage observations, many birth cohorts, disaggregated location information, and past economic conditions. We find that college expansion attracts individuals with lower returns to college, but the returns for marginal students vary considerably depending on the scale of expansion and the type of location where new campuses are opened. Marginal individuals in smaller cities and locations without college campuses receive the largest benefits from new campuses. The results provide important implications for the design of policies targeting the expansion of higher education.

Suggested Citation

  • Belskaya, Olga & Peter, Klara Sabirianova & Posso, Christian, 2014. "College Expansion and the Marginal Returns to Education: Evidence from Russia," IZA Discussion Papers 8735, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8735
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    References listed on IDEAS

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    1. Heckman, James J. & Humphries, John Eric & Veramendi, Gregory & Urzua, Sergio, 2014. "Education, Health and Wages," IZA Discussion Papers 8027, Institute of Labor Economics (IZA).
    2. Oppedisano, Veruska, 2011. "The (adverse) effects of expanding higher education: Evidence from Italy," Economics of Education Review, Elsevier, vol. 30(5), pages 997-1008, October.
    3. Fleisher, Belton M. & Sabirianova, Klara & Wang, Xiaojun, 2005. "Returns to skills and the speed of reforms: Evidence from Central and Eastern Europe, China, and Russia," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 351-370, June.
    4. John V. Winters, 2011. "Why Are Smart Cities Growing? Who Moves And Who Stays," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 253-270, May.
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    Cited by:

    1. Bernhard Eckwert & Itzhak Zilcha, 2018. "The Role of Colleges within the Higher Education Sector," CESifo Working Paper Series 7135, CESifo Group Munich.
    2. Nobuyoshi Kikuchi, 2017. "Marginal Returns to Schooling and Education Policy Change in Japan," ISER Discussion Paper 0996, Institute of Social and Economic Research, Osaka University.
    3. repec:bla:etrans:v:26:y:2018:i:4:p:827-840 is not listed on IDEAS
    4. Canavire-Bacarreza, Gustavo & Díaz Serrano, Lluís & Corrales-Espinosa, Alejandro, 2018. "The Impact of Public Libraries on School Achievement: The Case of Medellin," Working Papers 2072/351580, Universitat Rovira i Virgili, Department of Economics.
    5. Nobuyoshi Kikuchi, 2017. "Marginal Returns to Schooling and Education Policy Change in Japan," ISER Discussion Paper 0996r, Institute of Social and Economic Research, Osaka University, revised Oct 2017.

    More about this item

    Keywords

    education; returns to college; marginal treatment effect; policy‐relevant treatment effect; local instrumental variable; selection bias; college expansion; Russia;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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