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Higher Education Supply, Neighbourhood effects and Economic Welfare

Elena Cottini (), Paolo Ghinetti () and Simone Moriconi
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Elena Cottini: Universita' Cattolica di Milano

No 2019-EQM-05, Working Papers from IESEG School of Management

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.

Keywords: : : neighbourhood effects; higher education supply; historical data; initial conditions; economic welfare. (search for similar items in EconPapers)
JEL-codes: I23 I28 N00 R1 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2019-01
New Economics Papers: this item is included in nep-eur, nep-his and nep-ure
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Working Paper: Higher Education Supply, Neighbourhood Effects and Economic Welfare (2019) Downloads
Working Paper: Higher Education Supply, Neighbourhood effects and Economic Welfare (2019) Downloads
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