Free Movement of Workers and Native Demand for Tertiary Education

Mirjam Bächli and Teodora Tsankova

Journal of Human Resources, 2025, vol. 60, issue 6, 2038-2070

Abstract: We investigate how natives’ demand for tertiary education responds to a reform that relaxed employment restrictions for foreign workers in Switzerland. The policy change led to a sharp increase in cross-border commuting into Swiss areas close to the border. We find that enrollment in universities with a focus on applied studies rises in affected commuting zones, and this increase is driven by natives with a vocational background. Enrollment rises mostly in non-STEM fields that foster skills less transferable across countries. We show that enrollment results are consistent with a rising wage premium for tertiary non-STEM degrees.

JEL-codes: F22 I26 J24 J61 R23 (search for similar items in EconPapers)
Date: 2025
Note: DOI: https://doi.org/10.3368/jhr.0721-11805R2
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:60:y:2025:i:6:p:2038-2070

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