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Financing Bologna, the Internationally Mobile Students in European Higher Education

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Author Info
Marcel Gérard ()

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Abstract

Despite the importance of the Bologna process for the mobility of students, and the further mobility of graduates, as well as for peace, growth and welfare in that area, nothing has been decided so far for the financing of internationally mobile students, so that the burden of that financing, usually public, is supported by the host country. Moreover in- and outflows of students show imbalances and such imbalances are expected to increase with mobility. Therefore, we first suggest and discuss an alternative system transferring the responsibility for financing higher education to the country of origin of the students (except for those from developing countries). Origin country finances students from its territory through a two-part portable voucher: one part is dedicated to the financing of the true cost of studies, the other part intends to support student’s life and might be designed in such a way that some social goals are reached. Those vouchers can be used anywhere in a defined international area provided it is in the designed field of studies and in a school whose quality has been recognized by the issuing country. Some actual systems at work in the world, which prefigure aspects of the proposal, are presented in appendix. Second, we show that, when coupled with a compensation of the origin country in case of international career of the graduate, the system proposed in this paper might be equivalent to a centralized efficient design.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2391.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2391

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Related research
Keywords: Bologna process; higher education; mobility; federalism; subsidiarity; European Union;

Find related papers by JEL classification:
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
I20 - Health, Education, and Welfare - - Education - - - General

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    Other versions:
  2. Moshe Justman & Jacques-Francois Thisse, 2000. "Local Public Funding of Higher Education When Skilled Labor is Imperfectly Mobile," International Tax and Public Finance, Springer, vol. 7(3), pages 247-258, May. [Downloadable!] (restricted)
  3. Ian Bache, 2006. "The Europeanization of Higher Education: Markets, Politics or Learning?," Journal of Common Market Studies, Blackwell Publishing, vol. 44(2), pages 231-248, 06. [Downloadable!] (restricted)
  4. Fredrik Andersson & Kai Konrad, 2003. "Globalization and Risky Human-Capital Investment," Asia-Pacific Financial Markets, Springer, vol. 10(3), pages 211-228, May. [Downloadable!] (restricted)
    Other versions:
  5. Justman, Moshe & Thisse, Jacques-Francois, 1997. "Implications of the mobility of skilled labor for local public funding of higher education," Economics Letters, Elsevier, vol. 55(3), pages 409-412, September. [Downloadable!] (restricted)
  6. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August. [Downloadable!] (restricted)
  7. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October. [Downloadable!] (restricted)
  8. Frederick van der Ploeg & Reinhilde Veugelers, 2007. "Higher Education Reform and the Renewed Lisbon Strategy: Role of Member States and the European Commission," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  9. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February. [Downloadable!] (restricted)
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    Other versions:
  12. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  13. Panu Poutvaara & Vesa Kanniainen, 2000. "Why Invest in Your Neighbor? Social Contract on Educational Investment," International Tax and Public Finance, Springer, vol. 7(4), pages 547-562, August. [Downloadable!] (restricted)
  14. Thies Büttner & Robert Schwager, 2003. "Regionale Verteilungseffekte der Hochschulfinanzierung und ihre Konsequenzen," Departmental Discussion Papers 119, University of Goettingen, Department of Economics. [Downloadable!]
  15. Arjan Lejour & George Gelauff & Isabel Grilo, 2008. "Subsidiarity and Economic Reform in Europe," CPB Special Publications 73, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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    Other versions:
  17. Vincent Vandenberghe, 2007. "Family Income and Tertiary Education Attendance across the EU: An empirical assessment using sibling data," CASE Papers /123, Centre for Analysis of Social Exclusion, LSE. [Downloadable!]
  18. V. Vandenberghe & O. Debande, 2007. "Deferred and Income-contingent Tuition Fees: An Empirical Assessment using Belgian, German and UK Data," Education Economics, Taylor and Francis Journals, vol. 15(4), pages 421-440. [Downloadable!] (restricted)
  19. Lydia Mechtenberg & Roland Strausz, 2008. "The Bologna process: how student mobility affects multi-cultural skills and educational quality," International Tax and Public Finance, Springer, vol. 15(2), pages 109-130, April. [Downloadable!] (restricted)
    Other versions:
  20. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies. [Downloadable!]
  21. Ludger Woessmann, 2006. "Efficiency and Equity of European Education and Training Policies," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  22. Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August. [Downloadable!] (restricted)
  23. Marcel Gérard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor and Francis Journals, vol. 15(4), pages 441-454. [Downloadable!] (restricted)
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