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Return migration of foreign students and the choice of non-resident tuition fees

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  • Thomas Lange

Abstract

The paper presents a model of student migration in order to determine the optimal choice of non-resident tuition fees in a host country of higher education. Students with rational expectations consider a potential return migration in their first-round decision whether to study abroad, so that demand for the higher education system in the host country and optimal non-resident tuition fees depend on the stay rates of foreign-born graduates. A decline in stay rates of foreign students is demonstrated to induce a cutback of tuition fees if the costs of education per student are not too high. The fact that students take into account the possibility of return migration after graduation in their first-stage location decision in combination with rational expectations finally drives this result.

Suggested Citation

  • Thomas Lange, 2009. "Return migration of foreign students and the choice of non-resident tuition fees," ifo Working Paper Series 74, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_74
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    References listed on IDEAS

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    Cited by:

    1. LIU Yang, 2016. "To Stay or Leave? Migration decisions of foreign students in Japan," Discussion papers 16097, Research Institute of Economy, Trade and Industry (RIETI).
    2. Elise S. Brezis, 2016. "Why Migrate: For Study or for Work?," Economies, MDPI, vol. 4(3), pages 1-12, August.
    3. Thomas Lange, 2013. "Return migration of foreign students and non-resident tuition fees," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 703-718, April.

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    More about this item

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I29 - Health, Education, and Welfare - - Education - - - Other

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