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Competition for the International Pool of Talents : Education Policy with Student Mobility

Author

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  • Haupt, Alexander
  • Krieger, Tim
  • Lange, Thomas

Abstract

The paper presents a model of two countries competing for the international pool of talented students from the rest of the world. To relax tuition-fee competition, countries differentiate their education systems in equilibrium. While one country offers high education quality at high charges for students - the most talented ones study in this country - the other one provides lower quality and charges lower tuition fees. The regional quality-differentiation increases with the size of the international pool of talents, with the stay rate of foreign students in the host countries upon graduation and with the degree of development of the sending countries of foreign students. Compared to the welfare-maximizing education-policy, the decentralized solution is likely to imply an inefficient allocation of foreign students to the two host countries, as well as an inefficient quality differentiation.

Suggested Citation

  • Haupt, Alexander & Krieger, Tim & Lange, Thomas, 2010. "Competition for the International Pool of Talents : Education Policy with Student Mobility," CCES Discussion Paper Series 31, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:ccesdp:31
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18490/1/070ccesDP_31.pdf
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    References listed on IDEAS

    as
    1. De Fraja, Gianni & Iossa, Elisabetta, 2002. "Competition among Universities and the Emergence of the Elite Institution," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 275-293, July.
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    Cited by:

    1. Alexander Haupt & Tim Krieger & Thomas Lange, 2011. "Competition for the International Pool of Talent: Education Policy and Student Mobility," Working Papers CIE 35, Paderborn University, CIE Center for International Economics.
    2. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," Working Papers CIE 27, Paderborn University, CIE Center for International Economics.
    3. Marcel Gerard, 2010. "Financing Bologna Students' Mobility," Taxation Papers 26, Directorate General Taxation and Customs Union, European Commission.
    4. Gabrielle Demange & Robert Fenge, 2010. "Competition in the quality of higher education: the impact of students' mobility," PSE Working Papers halshs-00564912, HAL.
    5. Haupt, Alexander & Krieger, Tim & Lange, Thomas, 2013. "Education policy, student migration, and brain gain," Discussion Paper Series 2013-05, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.

    More about this item

    Keywords

    higher education; student mobility; vertical quality differentiation; return migration;

    JEL classification:

    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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