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International Student Mobility and High-Skilled Migration: The Evidence

Listed author(s):
  • Gabriel J. Felbermayr
  • Isabella Reczkowski

Using information from the UNCTAD, we construct a new balanced panel database of bilateral international student mobility for 150 origin countries, 23 host countries, and the years 1970–2000. We match these data with information on bilateral stocks of international migrants by educational attainment from census data, available for 1990 and 2000. We estimate a theory-founded gravity model by conditional fixed effects Poisson Pseudo Maximum Likelihood to investigate the question: To what extent do countries that attract foreign students benefit from an increased stock of educated foreign workers? We find that, on average, an increase of students by 10 percent increases the stock of tertiary educated workers in host countries by about 0.9 percent. That average effect is, however, entirely driven by Anglo-Saxon countries. On average, our results imply a student retention rate of about 70 percent. These results suggest that the costs of educating foreign students are at least partly offset by increased availability of foreign talent.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2012/IfoWorkingPaper-132.pdf
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Paper provided by Ifo Institute - Leibniz Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 132.

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Date of creation: 2012
Handle: RePEc:ces:ifowps:_132
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  1. Michel Beine & Frédéric Docquier & Caglar Özden, 2009. "Diasporas," CESifo Working Paper Series 2607, CESifo Group Munich.
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  5. Moshe Justman & Jacques-Francois Thisse, 2000. "Local Public Funding of Higher Education When Skilled Labor is Imperfectly Mobile," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(3), pages 247-258, May.
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  7. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2007. "Measuring International Skilled Migration: A New Database Controlling for Age of Entry," World Bank Economic Review, World Bank Group, vol. 21(2), pages 249-254, June.
  8. Demange, Gabrielle & Fenge, Robert & Uebelmesser, Silke, 2008. "The Provision of Higher Education in a Global World - Analysis and Policy Implications," CEPREMAP Working Papers (Docweb) 0806, CEPREMAP.
  9. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
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  11. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign Students and Migration to the United States," World Development, Elsevier, vol. 39(8), pages 1294-1307, August.
  12. Thomas Lange, 2009. "Public Funding of Higher Education when Students and Skilled Workers are Mobile," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 65(2), pages 178-199, June.
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  14. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
  15. Bob Anderton, 1997. "UK Labour Market Reforms and Sectoral Wage Formation," NIESR Discussion Papers 121, National Institute of Economic and Social Research.
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