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

Patrick Lehnert, Madison Dell, Uschi Backes-Gellner and Eric Bettinger
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Patrick Lehnert: University of Zurich
Madison Dell: Stanford University

No 17059, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: postsecondary education; regional economic development; higher education; social returns to education (search for similar items in EconPapers)
JEL-codes: I23 I25 I26 R12 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2024-06
New Economics Papers: this item is included in nep-geo and nep-ure
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Related works:
Working Paper: The Effect of Postsecondary Educational Institutions on Local Economies: A Bird's-Eye View (2024)
Working Paper: The Effect of Postsecondary Educational Institutions on Local Economies: A Bird’s-Eye View (2024)
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