Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202808
Authors: 
Huang, Mian
Xing, Chunbing
Cui, Xiaoyong
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12462
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Based on a representative survey of new college graduates in China, we examine the impact of college location on their location choice upon graduation. We use a discrete choice model and the BLP method to solve the endogeneity problem of housing cost and to estimate the unobservable location features. Furthermore, we allow for different distributions of city preference for graduates studying in different regions to address the self-selection problem of college location. Empirical results show that the graduates are significantly more likely to stay in where they attended college, to return to their hometown, and to avoid cities with high housing costs. Simulation exercise shows that the impact of college location on migration varies considerably across cities, and there is significant heterogeneity for students from universities of different tiers and from rural vs. urban areas. Reduced form evidence suggests that internship in the local labor market plays an important role in raising the probability of staying. College education increased the students' interaction with the local economy and reduced the costs of job search.
Subjects: 
higher education
regional development
location choice
human capital
JEL: 
J13
J16
J61
J24
Document Type: 
Working Paper

Files in This Item:
File
Size
424.64 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.