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The Provision of Higher Education in a Global World - Analysis and Policy Implications

Author

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  • Demange, Gabrielle
  • Fenge, Robert
  • Uebelmesser, Silke

Abstract

Mobility is a driving force in the labor market. It is especially crucial as higher education is concerned as it enlarges the opportunities of students and graduates or skilled workers, respectively, and affects the returns to their investment in education. Mobile students and graduates react to the institutional framework and on their turn induce changes in governmental policies as competition between educational institutions and countries becomes more intense. We are here interested in how governmental decisions about the financial regime and the quality level of higher education interact with individual incentives to invest in higher education in closed and in open economies. This question is especially important in the European Union. The Bologna Process, which was launched in 1999, precisely aims at removing the obstacles to mobility for students by establishing the so-called European Higher Education Area by the year 2010. These measures - especially those that increase transparency and comparability of different degree programmes - should lower migration costs. With equal conditions for access - following the non-discrimination principle that holds for EU-citizens - increased mobility is supposed to lead to more competition in terms of quality among different institutions of higher education. But the European Higher Education Area also creates incentives for governments to free-ride on other countries and regions. Free-riding should be especially strong if students are less mobile than skilled workers and if most of those who study abroad return to their home country after graduation. This shows how important it is for an evaluation of the Bologna Process to study different mobility scenarios. Two main questions arise. What is the rationale to increase student mobility? What will be the impact on the financing of higher education and its quality level? Our aim is to build a simple model to address these questions and to derive policy implications as to the optimal financial regime and quality level of higher education in the presence of migration opportunities.

Suggested Citation

  • 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.
  • Handle: RePEc:cpm:docweb:0806
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    References listed on IDEAS

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    1. Silke Uebelmesser, 2006. "To Go or Not to Go: Emigration from Germany," German Economic Review, Verein für Socialpolitik, vol. 7, pages 211-231, May.
    2. Marcel Gérard & Fernando Ruiz, 2006. "Interjurisdictional Competition for Higher Education and Firms," CESifo Working Paper Series 1719, CESifo Group Munich.
    3. Thum, Claudio & Uebelmesser, Silke, 2003. "Mobility and the Role of Education as a Commitment Device," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(5), pages 549-564, September.
    4. 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.
    5. Hessel Oosterbeek & Dinand Webbink, 2006. "Assessing the returns to studying abroad," CPB Discussion Paper 64, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Nicola D. Coniglio & Francesco Prota, 2008. "Human capital accumulation and migration in a peripheral EU region: the case of Basilicata," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 77-95, March.
    7. repec:oup:cesifo:v:54:y:2008:i:2:p:204-228. is not listed on IDEAS
    8. Stijn Kelchtermans & Frank Verboven, 2008. "Regulation of Program Supply in Higher Education: Lessons from a Funding System Reform in Flanders," CESifo Economic Studies, CESifo, vol. 54(2), pages 204-228.
    9. Joachim R. Frick & Markus M. Grabka & Olaf Groh-Samberg, 2007. "Economic Gains from Publicly Provided Education in Germany," SOEPpapers on Multidisciplinary Panel Data Research 28, DIW Berlin, The German Socio-Economic Panel (SOEP).
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    Cited by:

    1. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2014. "Financing Higher Education in a Mobile World," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(3), pages 343-371, June.
    2. Dwenger, Nadja & Storck, Johanna & Wrohlich, Katharina, 2012. "Do tuition fees affect the mobility of university applicants? Evidence from a natural experiment," Economics of Education Review, Elsevier, vol. 31(1), pages 155-167.
    3. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2015. "Quality of Education and the Number of Students: A General-Equilibrium Analysis," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(3), pages 456-477, September.
    4. Gabrielle Demange & Robert Fenge, 2010. "Competition in the quality of higher education: the impact of students' mobility," PSE Working Papers halshs-00564912, HAL.

    More about this item

    Keywords

    Highter Education; Migration; Competition; Funding; Education; Quality; Europe;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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