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Student and Graduate Migration and its Effect on the Financing of Higher Education

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  • Tina Haussen
  • Silke Uebelmesser

Abstract

The number of international students worldwide has almost doubled in the last decade. In higher education systems that are partly tax-funded, a country’s labour force might not be willing to subsidize the education of international students who might move away after graduation. This paper analyses how student migration affects governmental decisions regarding the financing of higher education for 22 OECD countries for the period of 2000 to 2011. Based on fixed effects estimations, we find a significant positive correlation between the share of international students and the private funding share for higher education. This result is robust to changes in the specification, including estimations for country groups and for an expanded lag structure. The use of an instrumental variable approach supports a causal interpretation.

Suggested Citation

  • Tina Haussen & Silke Uebelmesser, 2014. "Student and Graduate Migration and its Effect on the Financing of Higher Education," CESifo Working Paper Series 4963, CESifo.
    • Handle: RePEc:ces:ceswps:_4963
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    1. Niklas Potrafke, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Economics of Governance, Springer, vol. 12(2), pages 101-134, June.
    2. Potrafke Niklas, 2011. "Public Expenditures on Education and Cultural Affairs in the West German States: Does Government Ideology Influence the Budget Composition?," German Economic Review, De Gruyter, vol. 12(1), pages 124-145, February.
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    Cited by:

    1. Potrafke, Niklas, 2017. "Partisan politics: The empirical evidence from OECD panel studies," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 712-750.
    2. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2020. "Competition in the quality of higher education: the impact of student mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1224-1263, October.
    3. Chantal Oggenfuss & Stefan C. Wolter, 2019. "Are they coming back? The mobility of university graduates in switzerland [Kehren sie Zurück? Die Mobilität von Hochschulabsolventinnen und -Absolventen in der Schweiz]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(2), pages 189-208, October.
    4. Bruckmeier Kerstin & Fischer Georg-Benedikt & Wigger Berthold U., 2015. "Studiengebühren in Deutschland: Lehren aus einem gescheiterten Experiment," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(3), pages 289-301, October.
    5. Sara Binassi & Giovanni Guidetti & Mariele Macaluso & Giulio Pedrini, 2021. "Assessing selection patterns and wage differentials of high-skilled migrants. Evidence from Italian graduates working abroad," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 0(113), pages 83-115.

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    More about this item

    Keywords

    Higher education; financing; international student migration;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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