The impact of the closure of Private Universities on University expenditures and enrolment decisions: Evidence from Albania

This study investigates the impact that the first phase of the Higher Education Reform (closure of half of the existing Private Universities) had on University expenditures and enrolment decisions in Albania. Based on a difference-in-difference strategy, the findings suggest that the Reform is associated with a negative impact on expenditures and enrolment in Private Universities, and a positive impact (in few cases) on Public University outcomes. The different effects found on Public and Private University outcomes are very likely to be related with peoples’ perceptions regarding the validity of their investments in Higher Education, and the differences in quality between Public and Private Universities.