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Competition for the International Pool of Talent: Education Policy and Student Mobility

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  • Alexander Haupt

    ()
    (University of Plymouth)

  • Tim Krieger

    ()
    (University of Paderborn)

  • Thomas Lange

    ()
    (University of Konstanz)

Abstract

This paper presents a model of two countries competing for a pool of students from the rest of the world (ROW). In equilibrium, one country offers high educational quality for high tuition fees, while the other country provides a low quality and charges low fees. The quality in the high quality country, the tuition fees, and the quality and tuition fee differential between the countries increase with the income prospects in ROW and the number of international students. Higher stay rates of foreign students lead to more ambiguous results. In particular, an increase in educational quality can be accompanied by a decline in tuition fees. Furthermore, international competition for students can give rise to a brain gain in ROW.

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File URL: http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/ciepap/WP35.pdf
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Bibliographic Info

Paper provided by University of Paderborn, CIE Center for International Economics in its series Working Papers CIE with number 35.

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Length: 32 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:pdn:ciepap:35

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Keywords: Higher education; student mobility; vertical quality di erentiation; return migration; brain gain;

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References

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  1. Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series, Institute for Advanced Studies 100, Institute for Advanced Studies.
  2. De Fraja, Gianni & Iossa, Elisabetta, 2002. "Competition among Universities and the Emergence of the Elite Institution," Bulletin of Economic Research, Wiley Blackwell, Wiley Blackwell, vol. 54(3), pages 275-93, July.
  3. Baruch, Yehuda & Budhwar, Pawan S. & Khatri, Naresh, 2007. "Brain drain: Inclination to stay abroad after studies," Journal of World Business, Elsevier, Elsevier, vol. 42(1), pages 99-112, March.
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  5. Kemnitz, Alexander, 2007. "University Funding Reform, Competition and Teaching Quality," Dresden Discussion Paper Series in Economics, Dresden University of Technology, Faculty of Business and Economics, Department of Economics 01/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  6. Lisa Grazzini & Annalisa Luporini & Alessandro Petretto, 2011. "Competition between State Universities," CESifo Working Paper Series, CESifo Group Munich 3373, CESifo Group Munich.
  7. Hübner, Malte, 2009. "The welfare effects of discriminating between in-state and out-of-state students," Working Papers, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung 02/2009, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
  8. Hoyt, William H & Jensen, Richard A, 2001. " Product Differentiation and Public Education," Journal of Public Economic Theory, Association for Public Economic Theory, Association for Public Economic Theory, vol. 3(1), pages 69-93.
  9. Ben Zissimos & Myrna Wooders, 2003. "Public Good Differentiation and the Intensity of Tax Competition," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 0710, Vanderbilt University Department of Economics.
  10. Alexander Kemnitz, 2010. "Educational Federalism and the Quality Effects of Tuition Fees," CESifo Working Paper Series, CESifo Group Munich 3193, CESifo Group Munich.
  11. Tim Krieger & Thomas Lange, 2008. "Education policy and tax competition with imperfect student and labor mobility," Working Papers CIE 8, University of Paderborn, CIE Center for International Economics.
  12. BOADWAY, Robin & MARCEAU, Nicolas & MARCHAND, Maurice, 1995. "Issues in Decentralizing the Provision of Education," Cahiers de recherche, Université Laval - Département d'économique 9528, Université Laval - Département d'économique.
  13. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign students and migration to the United States," Munich Reprints in Economics, University of Munich, Department of Economics 20044, University of Munich, Department of Economics.
  14. Thomas Lange, 2009. "Public Funding of Higher Education when Students and Skilled Workers are Mobile," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 65(2), pages 178-199, June.
  15. Marcel Gerard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(4), pages 441-454.
  16. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," CESifo Working Paper Series, CESifo Group Munich 3154, CESifo Group Munich.
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  18. Haupt, Alexander & Krieger, Tim & Lange, Thomas, 2010. "Competition for the International Pool of Talents : Education Policy with Student Mobility," CCES Discussion Paper Series, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University 31, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
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Cited by:
  1. Marina Murat, 2013. "Education ties and investments abroad. Empirical evidence from the US and UK," Center for Economic Research (RECent), University of Modena and Reggio E., Dept. of Economics 091, University of Modena and Reggio E., Dept. of Economics.
  2. Tim Krieger, 2014. "Public Pensions and Immigration," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 10-15, 07.

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