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Free Movement of Workers and Native Demand for Tertiary Education

Mirjam Bächli () and Teodora Tsankova ()

No 2019, Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science

Abstract: We investigate how the introduction of free movement of workers affects enrolment of natives in tertiary education. In a difference-in-differences framework, we exploit a policy change that led to a significant increase in the share of cross-border commuters in local employment in border regions of Switzerland. Our results show a rise in enrolment at Universities of Applied Sciences in affected relative to non-affected regions in the post-reform period but no change in enrolment at traditional universities. Furthermore, we find that enrolment increases in non-STEM fields that build skills less transferable across national borders. This allows for complementarities with foreign workers who are more likely to hold occupations requiring STEM training. Individuals with a labor market oriented education such as vocationally trained respond to the increase in labor market competition because they have employment opportunities and access to tertiary education through Universities of Applied Sciences.

Keywords: Cross-border commuting; demand for tertiary education; study field choice; labor market conditions (search for similar items in EconPapers)
JEL-codes: F22 I26 J24 J61 R23 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2020-10
New Economics Papers: this item is included in nep-eur, nep-lab, nep-mig and nep-ure
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