Competition for the International Pool of Talents : Education Policy with Student Mobility
AbstractThe paper presents a model of two countries competing for the international pool of talented students from the rest of the world. To relax tuition-fee competition, countries differentiate their education systems in equilibrium. While one country offers high education quality at high charges for students - the most talented ones study in this country - the other one provides lower quality and charges lower tuition fees. The regional quality-differentiation increases with the size of the international pool of talents, with the stay rate of foreign students in the host countries upon graduation and with the degree of development of the sending countries of foreign students. Compared to the welfare-maximizing education-policy, the decentralized solution is likely to imply an inefficient allocation of foreign students to the two host countries, as well as an inefficient quality differentiation.
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Bibliographic InfoPaper provided by Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University in its series CCES Discussion Paper Series with number 31.
Length: 27 p.
Date of creation: Apr 2010
Date of revision:
higher education; student mobility; vertical quality differentiation; return migration;
Find related papers by JEL classification:
- H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
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- Alexander Haupt & Tim Krieger & Thomas Lange, 2011.
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35, University of Paderborn, CIE Center for International Economics.
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- Alexander Haupt & Tim Krieger & Thomas Lange, 2011. "Competition for the International Pool of Talent: Education Policy and Student Mobility," CESifo Working Paper Series 3421, CESifo Group Munich.
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- Haupt, Alexander & Krieger, Tim & Lange, Thomas, 2013. "Education policy, student migration, and brain gain," Discussion Paper Series 2013-05, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
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