International Education and Economic Growth
AbstractIn recent years international student mobility increased. While net hosting countries are in a better position to win highly educated students for their labour force, they face the additional cost of providing the education. In much of continental Europe these costs are not levied on students, but are borne by the national tax payers, making them an active topic of debate. Borrowing some fundamental equations from the Lucas growth model, this paper addresses the question whether countries benefit from educating international students. We derive conditions under which international education has a positive effect on economic growth, overall and in each specific country. Based on empirically motivated parameter values to calibrate our two-country model we find that international student mobility increases steady state growth for both countries on average by 0.013 percentage points. A small country that is favoured by the inflows of a larger country could experience an extra growth of 0.049 percentage points. The benefits from international education increase when a country tunes its education and migration policy.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7354.
Length: 20 pages
Date of creation: Apr 2013
Date of revision:
Publication status: published in: IZA Journal of European Labor Studies, 2013, 2:3
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Other versions of this item:
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-11 (All new papers)
- NEP-EDU-2013-05-11 (Education)
- NEP-FDG-2013-05-11 (Financial Development & Growth)
- NEP-PBE-2013-05-11 (Public Economics)
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.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- On the benefits of an international education
by Economic Logician in Economic Logic on 2013-06-03 14:59:00
- Poot, Jacques & Roskruge, Matthew, 2013. "Internationalisation of Education and Returns in the Labour Market," IZA Discussion Papers 7696, Institute for the Study of Labor (IZA).
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