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The effect of foreign students in higher education on native students’ outcomes

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  • Costas-Fernández, Julián
  • Morando, Greta
  • Holford, Angus

Abstract

This paper offers new evidence of the role of immigration in shaping the educational and labour market outcomes of natives. We use administrative data on the entire English higher education system and exploit the idiosyncratic variation of foreign students within university-degree across four cohorts of undergraduate students. Foreign peers have zero to mild effects on natives’ educational outcomes, such as graduation probability and degree classification. Significant effects are found on displacement across universities and degree types after enrolment, although these outcomes are rare occurrences. In line with the mild effects on education outcomes, we also find little evidence of foreign peers affecting early labour market outcomes of native graduates.

Suggested Citation

  • Costas-Fernández, Julián & Morando, Greta & Holford, Angus, 2023. "The effect of foreign students in higher education on native students’ outcomes," European Economic Review, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:eecrev:v:160:y:2023:i:c:s0014292123002234
    DOI: 10.1016/j.euroecorev.2023.104595
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    More about this item

    Keywords

    Peer effects; Higher education; Immigration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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