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Paying Out and Crowding Out? The Globalisation of Higher Education

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  • Stephen Machin
  • Richard Murphy

Abstract

We investigate the rapid influx of overseas students into UK higher education and the impact on the number of domestic students. Using administrative data since 1994/5, we find no evidence of crowd out of domestic undergraduate students and indications of increases in the domestic numbers of postgraduate students as overseas enrolments have grown. We interpret this as a cross-subsidisation and establish causal findings using two methods. Firstly, we use the historical share of students from a sending country attending a university department as a shift-share instrument to predict enrolment patterns. Secondly, we use a change in Chinese visa regulations and exchange rates in combination with strong subject preferences as a predictor of overseas student growth.

Suggested Citation

  • Stephen Machin & Richard Murphy, 2014. "Paying Out and Crowding Out? The Globalisation of Higher Education," CEP Discussion Papers dp1299, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp1299
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    Cited by:

    1. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2016. "A Passage to America: University Funding and International Students," NBER Working Papers 22981, National Bureau of Economic Research, Inc.
    2. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK," CREA Discussion Paper Series 17-15, Center for Research in Economic Analysis, University of Luxembourg.
    3. repec:cep:spccrr:spdorp03 is not listed on IDEAS
    4. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    5. repec:eee:pubeco:v:156:y:2017:i:c:p:170-184 is not listed on IDEAS

    More about this item

    Keywords

    Overseas students; crowding out;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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