Full Citation
Title: Moving Out and Apart: Race, Poverty, and the Suburbanization of Public School Segregation
Citation Type: Miscellaneous
Publication Year: 2022
ISBN:
ISSN: 0195-6744
DOI: 10.1086/723065
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PMCID:
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Abstract: Do foreign students affect the economic outcomes of the natives at places where they attend college? I address this question by examining the local economic impacts of foreign post-secondary student enrollment expansion-induced demand shocks between 2004 and 2016 in the US. By exploiting the spatial variation in the change in foreign student enrollment and using an instrumental variables methodology, I estimate the causal effects on a vector of local economic outcomes. On average, the demand shock leads to a substantial increase in employment, business establishments, and wages in the local economy. Contrary to what standard models of spatial equilibrium suggest, I find no significant effect on rent, potentially because of the elastic housing supply. The findings suggest welfare gains for native workers as employment opportunities and wages increased, while the local cost of living did not. At the same time, I find no evidence of negative spillover effects on neighboring places that do not host college students. I further provide some evidence that the welfare gains for the native workers might be larger in sparsely populated counties in the long run due to higher housing supply elasticity than in densely populated counties. While the multiplier effect of foreign student enrollment on local economic outcomes is sizable, the marginal effect of domestic student enrollment is small.
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Authors: Mordechay, Kfir; Terbeck, Fabian J.
Publisher:
Data Collections: IPUMS NHGIS
Topics: Education, Housing and Segregation, Migration and Immigration
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