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Migration and Housing Price Effects of Place-Based College Scholarships

Author

Listed:
  • Timothy J. Bartik

    (W.E. Upjohn Institute for Employment Research)

  • Nathan Sotherland

    (W.E. Upjohn Institute for Employment Research)

Abstract

Place-based college scholarships, such as the Kalamazoo Promise, provide students who live in a particular place, and/or who attend a particular school district, with generous college scholarships. An important potential benefit from such "Promise programs" is their short-term effects on local economic development. Generous Promise scholarships provide an incentive for families to locate in a particular place, which may change migration patterns, and potentially boost local employment and housing prices. Using data from the American Community Survey, this paper estimates the average effects of eight relatively generous Promise programs on migration rates and housing prices in their local labor market. The paper finds evidence that Promise programs lead to significantly reduced out-migration rates for at least three years after a Promise program is announced. These reductions in out-migration rates are larger for households with children, and are also larger when we focus on smaller areas around the Promise-eligible zone rather than the entire local labor market. These out-migration effects are large, implying that Promise programs lead to a 1.7 percent increase in overall population of the local labor market.

Suggested Citation

  • Timothy J. Bartik & Nathan Sotherland, 2015. "Migration and Housing Price Effects of Place-Based College Scholarships," Upjohn Working Papers 15-245, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:15-245
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    References listed on IDEAS

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    1. MacKinnon, James G. & Webb, Matthew D., 2020. "Randomization inference for difference-in-differences with few treated clusters," Journal of Econometrics, Elsevier, vol. 218(2), pages 435-450.
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    3. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    4. Timothy J. Bartik & Marta Lachowska, 2014. "The Short-Term Effects of the Kalamazoo Promise Scholarship on Student Outcomes," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 37-76, Emerald Group Publishing Limited.
    5. Andrew M. Isserman & James Westervelt, 2006. "1.5 Million Missing Numbers: Overcoming Employment Suppression in County Business Patterns Data," International Regional Science Review, , vol. 29(3), pages 311-335, July.
    6. Timothy J. Bartik & Marta Lachowska, "undated". "The Kalamazoo Promise Scholarship," Upjohn Working Papers tjbml14, W.E. Upjohn Institute for Employment Research.
    7. Ashley Miller, 2018. "College Scholarships as a Tool for Community Development? Evidence from the Kalamazoo Promise," Working Papers 1812, College of the Holy Cross, Department of Economics.
    8. Michelle Miller-Adams, 2009. "The Power of a Promise: Education and Economic Renewall in Kalamazoo," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number pop.
    9. Gabriella Conti & James J. Heckman & Rodrigo Pinto, 2016. "The Effects of Two Influential Early Childhood Interventions on Health and Healthy Behaviour," Economic Journal, Royal Economic Society, vol. 126(596), pages 28-65, October.
    10. Michelle Miller-Adams (ed.), 2015. "Promise Nation: Transforming Communities through Place-Based Scholarships," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number pn.
    11. Greenwood, Michael J & Hunt, Gary L, 1984. "Migration and Interregional Employment Redistribution in the United States," American Economic Review, American Economic Association, vol. 74(5), pages 957-969, December.
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    Cited by:

    1. Robert Bifulco & Ross Rubenstein & Hosung Sohn, 2017. "Using Synthetic Controls to Evaluate the Effect of Unique Interventions: The Case of Say Yes to Education," Evaluation Review, , vol. 41(6), pages 593-619, December.
    2. LeGower, Michael & Walsh, Randall, 2017. "Promise scholarship programs as place-making policy: Evidence from school enrollment and housing prices," Journal of Urban Economics, Elsevier, vol. 101(C), pages 74-89.
    3. Elaine W. Leigh & Manuel S. González Canché, 2021. "The College Promise in Communities: Do Place-based Scholarships Affect Residential Mobility Patterns?," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(3), pages 259-308, May.

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    More about this item

    Keywords

    College scholarships; Kalamazoo Promise; local economic development; migration;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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