Distance Does Matter, but Time is Critical. The Role of Spatial and Institutional Features in Choosing HEI

ABSTRACT This study aims to discover the barriers to studying a major aligned with personal interests. We applied a unique dataset on real retrospective choices of prospective students in Poland and utilized Random Parameter Multinomial Logistic Regression to model the preferences. We used driving time instead of geographical proximity to abolish the assumption of equal access to transport in Poland. Results from the nationally representative survey found a significant trade-off between driving time and personal interest compliance – one is willing to pay 2 hours in driving time to study a major that strongly matches her interest. The results were coherent with stated-choice studies, except for the average earnings after graduation. There was significant heterogeneity in the subjective willingness to pay between the NUTS2 regions in Poland, suggesting that some regions’ poor academic attractiveness might incentivize prospective students to move out. The continued trend might contribute to an increase in spatial human capital inequalities in Poland, as high achieving students will choose to study in academically oriented higher education institutions, while the disadvantaged might not have enough resources to bear the cost of commuting.