Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300955 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17059
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
postsecondary education
regional economic development
higher education
social returns to education
JEL: 
I23
I25
I26
R12
Document Type: 
Working Paper

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