The effect of import competition on educational attainment at the postsecondary level: Evidence from NAFTA

The North American Free Trade Agreement (NAFTA) substantially lowered the trade barrier between Mexico and the United States. I study the effect of American industries’ increased competition against Mexican imports on educational attainment at the postsecondary level. Using the commuting-zone-by-state level variations in the protection against import competition, I find evidence for a substantial increase in both enrollment and degree acquisition in public two- year colleges as a result of lowered tariffs on manufactured goods from Mexico. Educational attainment at four-year colleges, in the contrary, does not respond to NAFTA in a statistically meaningful manner.