The Impact of Plant Openings on University Enrollments

In the 56th session of the Specialized Talks series organized by the ISAR Research Center, we will be hosting Yusuf Kulu. In his presentation, Kulu will examine the relationship between industrial facilities surrounding universities and the impact of these facilities on the vitality of higher education.

Kulu’s talk, based on his own research, explores the effects of large plant openings on university enrollment decisions by utilizing all job postings in the United States to better understand local labor market demand across various skill levels. The methodology employed is based on comparing regions that secured plant investments with those that narrowly missed them (runner-up regions)—an approach originally developed by Greenstone, Hornbeck, and Moretti (2010).

The initial findings align with existing literature: following plant openings, high school graduates tend to join the labor force, resulting in a decrease in university enrollment rates. However, this decline is not observed in plants requiring high skill levels, whereas plants with low skill requirements are found to have a negative impact on university enrollments.

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