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Migration, Benefit Spillovers and State Support of Higher Education

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  • James G. Strathman

    (Center for Urban Studies, School of Urban and Public Affairs, Portland State University, Portland, OR 97207, USA)

Abstract

This paper tests the hypothesis that benefit spillovers from public higher educationproxied by out-niigration-led to lower higher education appropriations by state legislatures. A model addressing legislative appropriations, tuition and out-migration activity is developed and estimated. The results support the benefit spillover hypothesis, indicating that for each percentage point increase in out-migration, appropriations per student decline by $100. The results also reveal a bi-directional relationship between tuition and state appropriations. This is in contrast with the view that tuition is a 'residual' source of revenue representing the difference between the institutional budgets endorsed by educational policy-makers and the level of state appropriations.

Suggested Citation

  • James G. Strathman, 1994. "Migration, Benefit Spillovers and State Support of Higher Education," Urban Studies, Urban Studies Journal Limited, vol. 31(6), pages 913-920, June.
    • Handle: RePEc:sae:urbstu:v:31:y:1994:i:6:p:913-920
    DOI: 10.1080/00420989420080741
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    References listed on IDEAS

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    Cited by:

    1. Chatterji, Aaron K. & Kim, Joowon & McDevitt, Ryan C., 2018. "School spirit: Legislator school ties and state funding for higher education," Journal of Public Economics, Elsevier, vol. 164(C), pages 254-269.
    2. Robert R. Dunn, 2015. "Outmigration and State and Local Appropriations for Public Higher Education," The Review of Regional Studies, Southern Regional Science Association, vol. 45(3), pages 237-251, Winter.
    3. Michael Rizzo & Ronald G. Ehrenberg, 2004. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354, National Bureau of Economic Research, Inc.
    4. John Bound & Jeffrey Groen & Gabor Kezdi & Sarah Turner, 2001. "Trade in University Training: Cross-State Variation in the Production and Use of College-Educated Labor," NBER Working Papers 8555, National Bureau of Economic Research, Inc.
    5. Felicia Ionescu & Linnea A. Polgreen, 2009. "A Theory of Brain Drain and Public Funding for Higher Education in the United States," American Economic Review, American Economic Association, vol. 99(2), pages 517-521, May.
    6. Kalee Burns & Julie L. Hotchkiss, 2019. "Migration Constraints and Disparate Responses to Changing Job Opportunities," FRB Atlanta Working Paper 2019-1, Federal Reserve Bank of Atlanta.

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