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The Effect of University Openings on Local Human Capital Formation: Difference-in-Differences Evidence from Germany

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  • Benedikt Siegler

Abstract

Between 1960 and 1979, 93 new universities opened in Germany. Using this large tertiary education expansion, I estimate the effect of a university opening on the probability of obtaining a university degree in the local population. I exploit the geographical variation in local university access in a difference-in-differences approach by comparing age cohorts in counties that were and were not affected by the opening. Results show that a new university increases the share of university graduates in a county by 8 to 10 percentage points. The effect seems to be mainly driven my females and immigrants.

Suggested Citation

  • Benedikt Siegler, 2012. "The Effect of University Openings on Local Human Capital Formation: Difference-in-Differences Evidence from Germany," Working Papers 124, Bavarian Graduate Program in Economics (BGPE).
    • Handle: RePEc:bav:wpaper:124_siegler
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    File URL: http://www.bgpe.de/texte/DP/124_Siegler.pdf
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    References listed on IDEAS

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    Cited by:

    1. Nicolas Bunde & Nina Czernich & Oliver Falck & Gabriel J. Felbermayr, 2022. "What works? Regionale Auswirkungen von Hochschulgründungen und der Fall der neuen TU Oberösterreich," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 134.
    2. Oliver Falck & Siegfried Schönherr, 2016. "An Economic Reform Agenda for Croatia: a comprehensive economic reform package prepared for the Croatian Statehood Foundation," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 70.
    3. Samia FERHAT, 2022. "The impact of university openings on labor market outcomes," THEMA Working Papers 2022-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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    More about this item

    Keywords

    tertiary education; education expansion; difference-in-differences; natural experiment; new university opening;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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