Abstract
ABSTRACT We analyse the impact of newly established institutions of higher learning on employment by industry group and on population by age group. The study is conducted on German panel data on the county level from 2002 to 2018. During this time, numerous new institutions of higher learning were established in counties thus far not serviced. To account for the likely non-randomness of our treatment variable, the relatively small number of counties that switch from zero to at least one institution of higher learning, and the staggered nature of the individual county treatments, we utilize the newly devised generalized synthetic control method. We find that the share of manufacturing and financial services in employment rises a few years after a treatment, while the share of public sector employment declines. The level and share of young adults in the age group 18 to 35 tends to increase, in particular for rural counties. However, there is no evidence of a sustained rise in overall population or employment for counties.
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