The Differentiation of Russian Universities by Quality

The project studies the educational services structure on higher education market in Russia based on the data of universities in Moscow and Moscow region (94 observations) by assessing the demand function and testing for structural changes. The model analysis includes the estimation of regression equations using the ordinary least squares method and the instrumental variables method. The idea of the model and estimation procedure is borrowed from the article Berry (1994). In this paper we build a model for the dependent variable ‘students’ share studying at universities’. Information about passing score, enrolled students number, education cost, military department availability and etc. for 2019 year is used. The hypothesis of structural changes in the demand creation for educational services is tested by dividing the sample into two clusters with "higher quality of education" and "lower quality of education" and also with the rating separation and the educational programs separation: "Economics" and "Management". The results indicate a high differentiation level between universities.