IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2014-009.html
   My bibliography  Save this paper

Financing Higher Education when Students and Graduates are Internationally Mobile

Author

Listed:
  • Silke Uebelmesser

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Marcel Gérard

    (CESifo, Munich)

Abstract

This paper aims at linking cross border mobility of students and graduates with the financing of higher education. Against the background of institutional features and empirical evidence of the European Union and Northern America, a theoretical framework is developed. This allows analyzing the optimal financing regimes for different migration scenarios, comparing them with the regimes in place and discussing possible remedies. In particular, the (optimal) sharing of education costs between students / graduates and tax-payers is studied as well as the (optimal) sharing of the tax-payers' part between the various countries involved: the country which provides higher education (the host country), the country of previous education (the origin country) and possibly the countries which benefit from the improved skills of the workers. Alternative designs exhibiting potentially desirable properties are developed and policy recommendations derived.

Suggested Citation

  • Silke Uebelmesser & Marcel Gérard, 2014. "Financing Higher Education when Students and Graduates are Internationally Mobile," Jena Economic Research Papers 2014-009, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2014-009
    as

    Download full text from publisher

    File URL: http://zs.thulb.uni-jena.de/servlets/MCRFileNodeServlet/jportal_derivate_00237166/wp_2014_009.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bas Jacobs & Frederick Van Der Ploeg, 2006. "Guide to reform of higher education: a European perspective," Economic Policy, CEPR;CES;MSH, vol. 21(47), pages 535-592, July.
    2. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    3. 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.
    4. 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.
    5. Di Pietro, Giorgio, 2012. "Does studying abroad cause international labor mobility? Evidence from Italy," Economics Letters, Elsevier, vol. 117(3), pages 632-635.
    6. David E. Wildasin, 2000. "Labor-Market Integration, Investment in Risky Human Capital, and Fiscal Competition," American Economic Review, American Economic Association, vol. 90(1), pages 73-95, March.
    7. Wildasin, David, 2014. "Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy," IZA Discussion Papers 8199, Institute for the Study of Labor (IZA).
    8. Matthias Parey & Fabian Waldinger, 2011. "Studying Abroad and the Effect on International Labour Market Mobility: Evidence from the Introduction of ERASMUS," Economic Journal, Royal Economic Society, vol. 121(551), pages 194-222, March.
    9. Roger King & Simon Marginson & Rajani Naidoo (ed.), 2013. "The Globalization of Higher Education," Books, Edward Elgar Publishing, number 14768, December.
    10. Brigitte Waldorf, 2011. "The Location of Foreign Human Capital in the United States," Economic Development Quarterly, , vol. 25(4), pages 330-340, November.
    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. 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.
    13. Justman, Moshe & Thisse, Jacques-Francois, 1997. "Implications of the mobility of skilled labor for local public funding of higher education," Economics Letters, Elsevier, vol. 55(3), pages 409-412, September.
    14. Maria Racionero & Elena Del Rey, 2012. "Choosing the type of income-contingent loan: risk-sharing versus risk-pooling," CEPR Discussion Papers 671, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    15. 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.
    16. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    17. 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.
    18. Viktor Venhorst & Jouke Van Dijk & Leo Van Wissen, 2011. "An Analysis of Trends in Spatial Mobility of Dutch Graduates," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(1), pages 57-82.
    19. Andersson, Fredrik & Konrad, Kai A., 2003. "Human capital investment and globalization in extortionary states," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1539-1555, August.
    20. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-553, September.
    21. Marcel Gérard & Natacha Gilson & Fernando Ruiz, 2012. "Higher education and firms: on the interaction between research and regional policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 338-367, June.
    22. Hessel Oosterbeek & Dinand Webbink, 2011. "Does Studying Abroad Induce a Brain Drain?," Economica, London School of Economics and Political Science, vol. 78(310), pages 347-366, April.
    23. von Weizsäcker, Robert K & Wigger, Berthold, 1998. "Risk, Resources and Education," CEPR Discussion Papers 1808, C.E.P.R. Discussion Papers.
    24. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(6), pages 587-606, December.
    25. Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
    26. Silke Uebelmesser, 2006. "To Go or Not to Go: Emigration from Germany," German Economic Review, Verein für Socialpolitik, vol. 7, pages 211-231, May.
    27. 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.
    28. Alexander Haupt & Eckhard Janeba, 2009. "Education, redistribution and the threat of brain drain," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(1), pages 1-24, February.
    29. Webbink, Dinand & Martin, Nicholas G. & Visscher, Peter M., 2010. "Does education reduce the probability of being overweight?," Journal of Health Economics, Elsevier, vol. 29(1), pages 29-38, January.
    30. Marcel Gérard & Silke Übelmesser, 2013. "Globalization and Access to Higher Education – Policy Implications," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(2), pages 03-10, 07.
    31. Marcel Gerard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 441-454.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:taf:edecon:v:24:y:2016:i:6:p:573-591 is not listed on IDEAS
    2. Tina Haussen & Silke Uebelmesser, 2016. "Student and graduate migration and its effect on the financing of higher education," Education Economics, Taylor & Francis Journals, vol. 24(6), pages 573-591, November.
    3. Tina Haußen & Silke Übelmesser, 2015. "Mobilität von Hochschulabsolventen in Deutschland," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(02), pages 42-50, April.

    More about this item

    Keywords

    Mobility of students; Mobility of graduates; Financing of higher education;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2014-009. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche). General contact details of provider: http://www.jenecon.de .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.