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Return migration of foreign students andthe choice of non-resident tuition fees

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Author Info
Thomas Lange ()

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Abstract

The paper presents a model of student migration in order to determine the optimal choice of non-resident tuition fees in a host country of higher education. Students with rational expectations consider a potential return migration in their first-round decision whether to study abroad, so that demand for the higher education system in the host country and optimal non-resident tuition fees depend on the stay rates of foreign-born graduates.A decline in stay rates of foreign students is demonstrated to induce a cutback of tuition fees if the costs of education per student are not too high. The fact that students take into account the possibility of return migration after graduation in their first-stage location decision in combination with rational expectations finally drives this result.

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Publisher Info
Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 74.

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Date of creation: 2009
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Handle: RePEc:ces:ifowps:_74

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Related research
Keywords: tuition fees; oversea students; return migration; rationalexpectations; brain drain; preference for foreign lifestyle;

Find related papers by JEL classification:
D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
I29 - Health, Education, and Welfare - - Education - - - Other

References listed on IDEAS
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  1. Straubhaar, Thomas, 2000. "International Mobility of the Highly Skilled: Brain Gain, Brain Drain or Brain Exchange," Discussion Paper Series 26296, Hamburg Institute of International Economics. [Downloadable!]
  2. Stark, Oded, 2004. "Rethinking the Brain Drain," World Development, Elsevier, vol. 32(1), pages 15-22, January. [Downloadable!] (restricted)
  3. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies. [Downloadable!]
  4. 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)
  5. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(2), pages 236-256, 06. [Downloadable!] (restricted)
  6. Bhagwati, Jagdish & Dellalfar, William, 1973. "The brain drain and income taxation," World Development, Elsevier, vol. 1(1-2), pages 94-101, February. [Downloadable!] (restricted)
  7. 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)
  8. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April. [Downloadable!] (restricted)
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This page was last updated on 2009-11-28.

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