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Competition for the International Pool of Talent: Education Policy and Student Mobility

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

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, albeit inefficiently. One country offers high educational quality at high tuition fees and attracts the brightest students; the other country provides lower quality and charges lower fees. Recent developments, such as an increasing number of international students or growing graduate incomes in developing countries, widen the gap between education systems. Furthermore, educational competition among developed countries provides scope for a qualitative brain gain in less developed countries.

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File URL: http://econstor.eu/bitstream/10419/48310/1/49_krieger.pdf
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Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Berlin 2011 with number 49.

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Date of creation: 2011
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Handle: RePEc:zbw:gdec11:49
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  1. William H. Hoyt & Richard A. Jensen, 1997. "Product Differentiation and Public Education," Public Economics 9704001, EconWPA.
  2. Jaskold Gabszewicz, J. & Thisse, J. -F., 1979. "Price competition, quality and income disparities," Journal of Economic Theory, Elsevier, vol. 20(3), pages 340-359, June.
  3. Marcel Gerard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 441-454.
  4. Kemnitz, Alexander, 2007. "Educational Federalism and the Quality Effects of Tuition Fees," Dresden Discussion Paper Series in Economics 08/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  5. repec:pse:psecon:2010-27 is not listed on IDEAS
  6. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign students and migration to the United States," Munich Reprints in Economics 20044, University of Munich, Department of Economics.
  7. Hübner, Malte, 2009. "The welfare effects of discriminating between in-state and out-of-state students," Working Papers 02/2009, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
  8. 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 275-93, July.
  9. Michel Beine & Frédéric Docquier & Hillel Rapoport, . "Brain drain and human capital formation in developing countries: winners and losers?," ULB Institutional Repository 2013/10415, ULB -- Universite Libre de Bruxelles.
  10. Baruch, Yehuda & Budhwar, Pawan S. & Khatri, Naresh, 2007. "Brain drain: Inclination to stay abroad after studies," Journal of World Business, Elsevier, vol. 42(1), pages 99-112, March.
  11. Alexander Kemnitz, 2007. "University Funding Reform, Competition, and Teaching Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 356-378, June.
  12. Ben Zissimos & Myrna Wooders, 2003. "Public Good Differentiation and the Intensity of Tax Competition," Vanderbilt University Department of Economics Working Papers 0710, Vanderbilt University Department of Economics.
  13. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer, vol. 17(6), pages 587-606, December.
  14. Lisa Grazzini & Annalisa Luporini & Alessandro Petretto, 2010. "Competition between State Universities," Working Papers - Economics wp2010_02.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  15. Gabrielle Demange & Robert Fenge, 2010. "Competition in the quality of higher education: the impact of students' mobility," PSE Working Papers halshs-00564912, HAL.
  16. BOADWAY, Robin & MARCEAU, Nicolas & MARCHAND, Maurice, 1995. "Issues in Decentralizing the Provision of Education," Cahiers de recherche 9528, Université Laval - Département d'économique.
  17. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
  18. 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.
  19. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," CESifo Working Paper Series 3154, CESifo Group Munich.
  20. Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998. "Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?," Departmental Working Papers _096, Chinese University of Hong Kong, Department of Economics.
  21. repec:hal:wpaper:halshs-00564912 is not listed on IDEAS
  22. 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.
  23. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
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