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State Appropriations and Employment at Higher Education Institutions
his paper studies the impacts of state appropriations on staffing and salaries at public higher education institutions in the United States using employment and revenue data from the Integrated Postsecondary Education Data System, along with an instrumental variables strategy borrowed from Deming and Walters (2018) and Chakrabarti, Gorton, and Lovenheim (2020). The instrument sidesteps the potential endogeneity of state appropriations for a given institution in a given year by interacting an institution’s historical reliance on state appropriations with total state appropriations for all ...