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Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?

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Author Info
Panu Poutvaara () (University of Helsinki and IZA Bonn)

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Abstract

This paper analyzes public provision of internationally applicable and country-specific education, when job opportunities available to those with internationally applicable education are uncertain. Migration provides a market insurance in case labor market opportunities in the home country are poor. An increasing international applicability of a given type of education encourages students to invest more effort when studying. Governments, on the other hand, face an incentive to divert the provision of public education away from internationally applicable education toward country-specific skills. This would mean educating too few engineers, economists and doctors, and too many lawyers.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2478.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 26 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2478

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Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
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Web page: http://www.iza.org

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Related research
Keywords: public education; migration; brain drain and brain gain; European Union; common labor market;

Other versions of this item:

Find related papers by JEL classification:
H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
I28 - Health, Education, and Welfare - - Education - - - Government Policy
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1.
  2. Richter, Wolfram F., 2002. "Social Security and Taxation of Labour Subject to Subsidiarity and Freedom of Movement," IZA Discussion Papers 490, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Claudio Thum & Silke Uebelmesser, 2003. "Mobility and the Role of Education as a Commitment Device," Asia-Pacific Financial Markets, Springer, vol. 10(5), pages 549-564, September. [Downloadable!] (restricted)
    Other versions:
  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. 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)
  9. Mihir Desai & Devesh Kapur & John McHale, 2004. "Sharing the Spoils: Taxing International Human Capital Flows," Asia-Pacific Financial Markets, Springer, vol. 11(5), pages 663-693, September. [Downloadable!] (restricted)
    Other versions:
  10. Bhagwati, Jagdish N. & Hamada, Koichi, 1982. "Tax policy in the presence of emigration," Journal of Public Economics, Elsevier, vol. 18(3), pages 291-317, August. [Downloadable!] (restricted)
  11. Panu Poutvaara, 2003. "Educating Europe," Public Economics 0302008, EconWPA. [Downloadable!]
    Other versions:
  12. Sinn, Hans-Werner, 1993. "How Much Europe? Subsidiarity, Centralization and Fiscal Competition," CEPR Discussion Papers 834, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  13. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A Brain Gain with a Brain Drain," Economics Series 45, Institute for Advanced Studies. [Downloadable!]
  14. Michael J. Keen & Christos Kotsogiannis, 2002. "Does Federalism Lead to Excessively High Taxes?," American Economic Review, American Economic Association, vol. 92(1), pages 363-370, March. [Downloadable!]
  15. Keen, Michael & Marchand, Maurice, 1997. "Fiscal competition and the pattern of public spending," Journal of Public Economics, Elsevier, vol. 66(1), pages 33-53, October. [Downloadable!] (restricted)
  16. David E. Wildasin, 2000. "Labor-Market Integration, Investment in Risky Human Capital, and Fiscal Competition," American Economic Review, American Economic Association, vol. 90(1), pages 73-95, March. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lydia Mechtenberg & Roland Strausz, . "The Bologna Process: How student mobility affects multi-cultural skills and educational quality," Papers 030, Departmental Working Papers. [Downloadable!]
    Other versions:
  2. Marcel Gérard, 2008. "Financing Bologna, the Internationally Mobile Students in European Higher Education," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Frédéric Docquier, 2006. "Brain Drain and Inequality Across Nations," IZA Discussion Papers 2440, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Schwager, Robert, 2007. "Public Universities, Tuition and Competition: A Tiebout Model," ZEW Discussion Papers 07-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  5. Hartmut Egger & Josef Falkinger & Volker Grossmann, 2007. "Brain Drain, Fiscal Competition, and Public Education Expenditure," IZA Discussion Papers 2747, Institute for the Study of Labor (IZA). [Downloadable!]
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