Higher Education as Regional Development: Labor Market Impacts of Nigeria’s 2011 Federal University Expansion

Aipoh, Godwin and Yusuff, Olanrewaju (2025): Higher Education as Regional Development: Labor Market Impacts of Nigeria’s 2011 Federal University Expansion.

Abstract

This paper examines the causal impact of higher education expansion on regional labor markets and human capital development. Exploiting the 2011 establishment of nine federal universities across previously underserved Nigerian states, we implement a difference-in-differences approach to analyze effects on employment, wages, job quality, and sectoral composition. Our results show significant positive effects on employment and wages, with particularly strong impacts for youth and in urban areas. We find evidence of both direct employment effects and broader spillovers to private sector activity such as self-employment, suggesting universities can serve as catalysts for regional economic development. Our findings contribute to understanding the role of higher education institutions in human capital formation and labor market development in emerging economies

• Item Type: MPRA Paper
• Language: English
• Keywords: Higher Education, Labor Markets, Economic Development, Regional Growth, Universities, Employment, Wages, Nigeria, Africa
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies; H - Public Economics > H5 - National Government Expenditures and Related Policies > H52 - Government Expenditures and Education; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I25 - Education and Economic Development; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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