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

Author

Listed:
  • Patrick Lehnert
  • Madison Dell
  • Uschi Backes-Gellner
  • Eric Bettinger
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

  • Patrick Lehnert & Madison Dell & Uschi Backes-Gellner & Eric Bettinger, 2024. "The Effect of Postsecondary Educational Institutions on Local Economies: A Bird's-Eye View," Economics of Education Working Paper Series 0210, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0210
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    References listed on IDEAS

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    More about this item

    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)

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