The present note offers improvements on previous work by Tuckman (1970) and Mixon (1992a, b) that describes college student migration as a from of human capital investment. WHile previous work employed macro-data and single equation estimation techniques, the present study utilizes a large institution-level data set of four-year colleges in the US and two-stage least-squares estimation to account properly for the simultaneity within the modeling process. This study suggests that small class sizes, college selectivity, successful athletic programmes, the availability of diverse cultural alternatives, and highly qualified and productive faculty are important in attracting non-resident students to colleges and universities across states. In summary, this research note lends support to human capital theory and offers an alternative to the screening hypothesis.
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Mixon et al. (1994) studied this question.
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