Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17059.html
   My bibliography  Save this paper

The Effect of Postsecondary Educational Institutions on Local Economies: A Bird's-Eye View

Author

Listed:
  • Lehnert, Patrick

    (University of Zurich)

  • Dell, Madison

    (Stanford University)

  • Backes-Gellner, Uschi

    (University of Zurich)

  • Bettinger, Eric

    (Stanford University)

Abstract
Despite worldwide expansion of higher education, the impact of higher education institutions on local economic activity is still poorly understood. We analyze the local economic effects of branch campus openings in Tennessee and Texas, two states representative of the underlying U.S. enrollment patterns. To overcome the lack of adequate data, we use a novel proxy for regional economic activity based on daytime satellite imagery. Applying different panel methods—traditional difference-in-differences (DD), heterogeneity-robust DD, and instrumental variables—we find positive effects. Independent data show an increase in college graduates and employment in the sectors aligned with programs offered at branch campuses.

Suggested Citation

  • Lehnert, Patrick & Dell, Madison & Backes-Gellner, Uschi & Bettinger, Eric, 2024. "The Effect of Postsecondary Educational Institutions on Local Economies: A Bird's-Eye View," IZA Discussion Papers 17059, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17059
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp17059.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tobias Schlegel & Curdin Pfister & Uschi Backes-Gellner, 2022. "Tertiary education expansion and regional firm development," Regional Studies, Taylor & Francis Journals, vol. 56(11), pages 1874-1887, November.
    2. Valero, Anna & Van Reenen, John, 2019. "The economic impact of universities: Evidence from across the globe," Economics of Education Review, Elsevier, vol. 68(C), pages 53-67.
    3. Jack Mountjoy, 2022. "Community Colleges and Upward Mobility," American Economic Review, American Economic Association, vol. 112(8), pages 2580-2630, August.
    4. J Vernon Henderson & Tim Squires & Adam Storeygard & David Weil, 2018. "The Global Distribution of Economic Activity: Nature, History, and the Role of Trade1," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 357-406.
    5. Oppedisano, Veruska, 2014. "Higher education expansion and unskilled labour market outcomes," Economics of Education Review, Elsevier, vol. 40(C), pages 205-220.
    6. Walker, Ian & Zhu, Yu, 2018. "University selectivity and the relative returns to higher education: Evidence from the UK," Labour Economics, Elsevier, vol. 53(C), pages 230-249.
    7. Daniel A Kamhöfer & Hendrik Schmitz & Matthias Westphal, 2019. "Heterogeneity in Marginal Non-Monetary Returns to Higher Education," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 205-244.
    8. Janet Currie & Enrico Moretti, 2003. "Mother's Education and the Intergenerational Transmission of Human Capital: Evidence from College Openings," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1495-1532.
    9. Michael Fritsch & Viktor Slavtchev, 2007. "Universities and Innovation in Space," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 201-218.
    10. Otto Toivanen & Lotta Väänänen, 2016. "Education and Invention," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 382-396, May.
    11. Nicola Bianchi & Michela Giorcelli, 2020. "Scientific Education and Innovation: From Technical Diplomas to University Stem Degrees [The Social Origins and IQ of Inventors]," Journal of the European Economic Association, European Economic Association, vol. 18(5), pages 2608-2646.
    12. Christian Rammer & Jan Kinne & Knut Blind, 2020. "Knowledge proximity and firm innovation: A microgeographic analysis for Berlin," Urban Studies, Urban Studies Journal Limited, vol. 57(5), pages 996-1014, April.
    13. Yi Che & Lei Zhang, 2018. "Human Capital, Technology Adoption and Firm Performance: Impacts of China's Higher Education Expansion in the Late 1990s," Economic Journal, Royal Economic Society, vol. 128(614), pages 2282-2320, September.
    14. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    15. Valerie A. Ramey, 2011. "Can Government Purchases Stimulate the Economy?," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 673-685, September.
    16. Nicole M. Fortin, 2006. "Higher-Education Policies and the College Wage Premium: Cross-State Evidence from the 1990s," American Economic Review, American Economic Association, vol. 96(4), pages 959-987, September.
    17. Philip Oreopoulos & Uros Petronijevic, 2013. "Making College Worth It: A Review of Research on the Returns to Higher Education," NBER Working Papers 19053, National Bureau of Economic Research, Inc.
    18. Lee, Yong Suk, 2018. "International isolation and regional inequality: Evidence from sanctions on North Korea," Journal of Urban Economics, Elsevier, vol. 103(C), pages 34-51.
    19. Sutton, Paul C. & Costanza, Robert, 2002. "Global estimates of market and non-market values derived from nighttime satellite imagery, land cover, and ecosystem service valuation," Ecological Economics, Elsevier, vol. 41(3), pages 509-527, June.
    20. Shimeng Liu, 2015. "Spillovers from Universities: Evidence from the Land-Grant Program," Working Paper 9410, USC Lusk Center for Real Estate.
    21. Samuel Bazzi & Arya Gaduh & Alexander D. Rothenberg & Maisy Wong, 2016. "Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia," American Economic Review, American Economic Association, vol. 106(9), pages 2658-2698, September.
    22. Devereux, Paul J. & Fan, Wen, 2011. "Earnings returns to the British education expansion," Economics of Education Review, Elsevier, vol. 30(6), pages 1153-1166.
    23. Leten, Bart & Landoni, Paolo & Van Looy, Bart, 2014. "Science or graduates: How do firms benefit from the proximity of universities?," Research Policy, Elsevier, vol. 43(8), pages 1398-1412.
    24. Michael J. Andrews, 2023. "How Do Institutions of Higher Education Affect Local Invention? Evidence from the Establishment of US Colleges," American Economic Journal: Economic Policy, American Economic Association, vol. 15(2), pages 1-41, May.
    25. Liu, Shimeng, 2015. "Spillovers from universities: Evidence from the land-grant program," Journal of Urban Economics, Elsevier, vol. 87(C), pages 25-41.
    26. Shawn Kantor & Alexander Whalley, 2014. "Knowledge Spillovers from Research Universities: Evidence from Endowment Value Shocks," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 171-188, March.
    27. Shawn Kantor & Alexander Whalley, 2019. "Research Proximity and Productivity: Long-Term Evidence from Agriculture," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 819-854.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lehnert, Patrick & Pfister, Curdin & Backes-Gellner, Uschi, 2020. "Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland," Labour Economics, Elsevier, vol. 66(C).
    2. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    3. Valero, Anna & Van Reenen, John, 2019. "The economic impact of universities: Evidence from across the globe," Economics of Education Review, Elsevier, vol. 68(C), pages 53-67.
    4. Pfister, Curdin & Koomen, Miriam & Harhoff, Dietmar & Backes-Gellner, Uschi, 2021. "Regional innovation effects of applied research institutions," Research Policy, Elsevier, vol. 50(4).
    5. Luisa Gagliardi,, "undated". "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," RF Berlin - CReAM Discussion Paper Series 2317, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    6. Sivropoulos-Valero, Anna Alexandra, 2021. "Education and economic growth," LSE Research Online Documents on Economics 114434, London School of Economics and Political Science, LSE Library.
    7. Krieger, Bastian, 2023. "Heterogeneous regional university funding and firm innovation: An empirical analysis of the German excellence initiative," ZEW Discussion Papers 23-006, ZEW - Leibniz Centre for European Economic Research.
    8. Luisa Gagliardi & Enrico Moretti & Michel Serafinelli, 2023. "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," NBER Working Papers 31948, National Bureau of Economic Research, Inc.
    9. Robbiano, Simone, 2022. "The innovative impact of public research institutes: Evidence from Italy," Research Policy, Elsevier, vol. 51(10).
    10. Anna Valero, 2021. "Education and economic growth," POID Working Papers 006, Centre for Economic Performance, LSE.
    11. Anna Valero, 2021. "Education and economic growth," CEP Discussion Papers dp1764, Centre for Economic Performance, LSE.
    12. Robbiano, Simone, 2021. "The innovative impact of public research institutes: evidence from Italy," MPRA Paper 106386, University Library of Munich, Germany.
    13. Wiljan van den Berge & Jonneke Bolhaar & Roel van Elk, 2017. "Knowledge diffusion across regions and countries: evidence from patent citations," CPB Discussion Paper 348.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Rong, Zhao & Wu, Binzhen, 2020. "Scientific personnel reallocation and firm innovation: Evidence from China’s college expansion," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 709-728.
    15. Patrick Lehnert & Michael Niederberger & Uschi Backes-Gellner & Eric Bettinger, 2020. "Proxying Economic Activity with Daytime Satellite Imagery: Filling Data Gaps Across Time and Space," Economics of Education Working Paper Series 0165, University of Zurich, Department of Business Administration (IBW), revised Sep 2022.
    16. Diekhoff, Josefine & Krieger, Bastian & Licht, Georg & Rammer, Christian, 2019. "Stand der Messung von Interaktionen zwischen Wissenschaft und Wirtschaft im internationalen Vergleich," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 248650.
    17. Lee, Jongkwan, 2021. "The Role of a University in Cluster Formation: Evidence from a National Institute of Science and Technology in Korea," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    18. Wiljan van den Berge & Jonneke Bolhaar & Roel van Elk, 2017. "Knowledge diffusion across regions and countries: evidence from patent citations," CPB Discussion Paper 348, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Patrick Lehnert & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2020. "Innovation Effects and Knowledge Complementarities in a Diverse Research Landscape," Economics of Education Working Paper Series 0164, University of Zurich, Department of Business Administration (IBW), revised Jan 2022.
    20. Eunhee Sohn, 2021. "How Local Industry R&D Shapes Academic Research: Evidence from the Agricultural Biotechnology Revolution," Organization Science, INFORMS, vol. 32(3), pages 675-707, May.

    More about this item

    Keywords

    postsecondary education; regional economic development; higher education; social returns to education;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp17059. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.