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Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?

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  • Panu Poutvaara

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Abstract

An increasing international applicability of a given type of education encourages students to invest more effort when studying. Governments, on the other hand, face an incentive to divert the provision of public education away from internationally applicable education toward country-specific skills. This would mean educating too few engineers, economists and doctors, and too many lawyers. If the total tax rate is kept constant, then replacing part of existing wage taxes with graduate taxes, collected also from migrants, would improve efficiency. It could even allow for a Pareto-improvement.

Suggested Citation

  • Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," CESifo Working Paper Series 1369, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_1369
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    References listed on IDEAS

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    Cited by:

    1. Malik Fahim Bashir & Changsheng Xu & Khalid Zaman & Ghulam Akhmat, 2014. "Key Factors Determining the Rationale for Brain Drain: An Irony Never Recovered," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(8), pages 308-320, August.
    2. Elise S. Brezis & Ariel Soueri, 2013. "Mobility of Students and Quality of Higher Education: An Empirical Analysis of the “Unified Brain Drain” Model," Working Papers 2013-11, Bar-Ilan University, Department of Economics.
    3. Alessio Biondo, 2012. "What’s up after brain drain? Sometimes, somewhere, someone comes back: a general model of return migration," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 59(3), pages 269-284, September.
    4. Schild, Christopher-Johannes & Wrede, Matthias, 2015. "Cultural identity, mobility and decentralization," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 323-333.
    5. Jens Südekum, 2005. "The Pitfalls of Regional Education Policy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(3), pages 327-327, November.
    6. Lydia Mechtenberg & Roland Strausz, 2008. "The Bologna process: how student mobility affects multi-cultural skills and educational quality," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 109-130, April.
    7. Hartmut Egger & Josef Falkinger & Volker Grossmann, 2012. "Brain Drain, Fiscal Competition, and Public Education Expenditure," Review of International Economics, Wiley Blackwell, vol. 20(1), pages 81-94, February.
    8. Mariani, Fabio, 2007. "Migration as an antidote to rent-seeking?," Journal of Development Economics, Elsevier, pages 609-630.
    9. Oprean, Victor-Bogdan, 2012. "Sustainability of the Romanian Social Security System. The Burden of Education," MPRA Paper 41432, University Library of Munich, Germany.
    10. Elise S. Brezis, 2016. "Why Migrate: For Study or for Work?," Economies, MDPI, Open Access Journal, vol. 4(3), pages 1-12, August.
    11. Baskaran, Thushyanthan & Hessami, Zohal, 2010. "Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis," MPRA Paper 25750, University Library of Munich, Germany.
    12. Oprean Victor Bogdan, 2014. "Migration Costs in Asymmetric Environments and Education Outsourcing. The Case of Romania," Scientific Annals of Economics and Business, De Gruyter Open, vol. 61(1), pages 1-15, July.
    13. Elise Brezis & Ariel Soueri, 2011. "Why do Students Migrate? Where do they Migrate to?," Working Papers 25, AlmaLaurea Inter-University Consortium.
    14. Docquier, Frédéric, 2006. "Brain Drain and Inequality Across Nations," IZA Discussion Papers 2440, Institute for the Study of Labor (IZA).
    15. Marcel Gérard, 2008. "Financing Bologna, the Internationally Mobile Students in European Higher Education," CESifo Working Paper Series 2391, CESifo Group Munich.
    16. Elise S. Brezis & Ariel Soueri, 2012. "Globalization and Migration: A “Unified Brain Drain” Model," Working Papers 2012-15, Bar-Ilan University, Department of Economics.
    17. Schwager, Robert, 2007. "Public Universities, Tuition and Competition: A Tiebout Model," ZEW Discussion Papers 07-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    graduate taxes; public education; European Union; migration; brain drain and brain gain;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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