The Local Effect of College Closures in the United States

• In Event: Saturday Roundtable 7:45 am
  In Roundtable Session: Policies and Politicking: The Impact of and on Higher Education (Table 31)

Abstract

Given theoretical justification for and empirical evidence of the positive local effect of colleges, I investigate whether the absence of a college due to its closure affects local college enrollment, GDP, or business activity at the county level. I leverage synthetic control methods and focus on the cases of three private, not-for-private college closures. I do not detect effects in terms of local college enrollment, suggesting that alternative options or substitutes were available in other neighboring districts. For economic outcomes, I find that even when closures do not move the needle in the overall economy, specific industries at certain localities may experience repercussions.

Author

• Ji Yeon Bae, Handong Global University