In this project, we use a differences-in-differences approach to examine the effects of introducing computer science degree programs on local labor markets in Germany. To this end, we combine administrative labor market data with a novel dataset on the location and timing of the introduction of such study programs.
The results show that the introduction of computer science programs leads to a substantial increase in the number of employed computer scientists in the affected regions—an effect that grows stronger over time. However, this increase benefits almost exclusively the information and communications sector, with little spillover into other industries. Despite the expanded labor supply, wages remain stable.