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Can Conditional Student Aid Increase the Labor Supply of Foreign Students?

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  • Asbjoern Juul Petersen

    (Department of Economics, University of Copenhagen)

Abstract

In this paper, I investigate the effects of offering conditional student aid to foreign students on their labor supply in Denmark. I utilize a natural experiment created by an EU court ruling in 2013, deciding that foreign students had the right to a monthly student aid subsidy on equal terms with Danish students provided they work 10-12 hours per week, alongside their studies. I hypothesize, that this ruling can potentially increase labor supply of foreign students along three margins: i) A higher inflow of foreign students, ii) An increased labor supply during studies, and iii) An increased labor supply after studies. I use administrative data from Statistics Denmark to test these hypotheses. While I find an increased labor supply of foreign students during their studies, my results do not point to an increased inflow of students nor to an increased labor supply after ended studies.

Suggested Citation

  • Asbjoern Juul Petersen, 2025. "Can Conditional Student Aid Increase the Labor Supply of Foreign Students?," CEBI working paper series 25-13, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2513
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    File URL: https://www.econ.ku.dk/cebi/publikationer/working-papers/CEBI_WP_13-25.1.pdf
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    References listed on IDEAS

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    1. Diane Whitmore Schanzenbach & Michael R. Strain, 2021. "Employment Effects of the Earned Income Tax Credit: Taking the Long View," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 87-129.
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    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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