Do universities benefit local youth? Evidence from the creation of new universities

In this study, I examine university and college participation rates, as well as graduate outcomes, following the establishment of a university in cities where there were previously none. The creation of a local university is associated with a large increase in university attendance among local youth in each affected city. However, the increase in university participation came at the expense of college participation in most cities. Furthermore, not everyone benefited equally from new universities in terms of university enrolment. In the short run, the creation of a local university is associated with a substantial increase in the probability of moving out of one city for men and women. For men, employment rates rise, while for women, there is an increase in business services and public sector employment.