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Title: Spillovers from Universities: Evidence from the Land-Grant Program

Citation Type: Miscellaneous

Publication Year: 2013

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Abstract: This paper presents evidence of spillovers from universities and examines the short- and long-run effects of university activities on geographic clustering of economic activity, labor market composition and local productivity. I treat the designation of land-grant universities as a natural experiment after controlling for the confounding factors with a combination of synthetic control methods and event-study analyses. Three key results are obtained. First, the designation substantially increases local population density. Second, the share of manufacturing workers in the population, an indicator of labor market composition, is not affected by the designation. Third, the designation greatly enhances local manufacturing productivity, as captured by local manufacturing output per worker, especially in the long run. This positive effect on the productivity in non-education sectors suggests the existence of spillovers from universities. Over an 80-year horizon, I estimate that most of the increase in manufacturing productivity is because of spillovers from university activities instead of agglomeration economies that arise from the concentration of population.

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Authors: Liu, Shimeng

Publisher: Syracuse University

Data Collections: IPUMS USA

Topics: Other

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