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

Listed author(s):
  • 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: https://www.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
Handle: RePEc:zbw:gdec11:49
Contact details of provider: Web page: http://www.ael.ethz.ch/

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  1. 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.
  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. Michel Beine & Frédéric Docquier & Hillel Rapoport, "undated". "Brain drain and human capital formation in developing countries: winners and losers?," ULB Institutional Repository 2013/10415, ULB -- Universite Libre de Bruxelles.
  4. 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.
  5. Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
  6. William H. Hoyt & Richard A. Jensen, 1997. "Product Differentiation and Public Education," Public Economics 9704001, EconWPA.
  7. Boadway, R. & Marceau, N. & Marchand, M., 1995. "Issues in Decentralizing the Provision of Education," Papers 9528, Laval - Recherche en Politique Economique.
  8. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human Capital Depletion, Human Capital Formation, and Migration. A Blessing in a "Curse"?," Economics Series 55, Institute for Advanced Studies.
  9. Tim Krieger & Thomas Lange, 2008. "Education policy and tax competition with imperfect student and labor mobility," Working Papers CIE 8, Paderborn University, CIE Center for International Economics.
  10. Gabrielle Demange & Robert Fenge, 2010. "Competition in the quality of higher education: the impact of students' mobility," PSE Working Papers halshs-00564912, HAL.
  11. Gabrielle Demange & Robert Fenge, 2010. "Competition in the quality of higher education: the impact of students' mobility," Working Papers halshs-00564912, HAL.
  12. Zissimos, Ben & Wooders, Myrna, 2008. "Public good differentiation and the intensity of tax competition," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1105-1121, June.
  13. Marcel Gerard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 441-454.
  14. repec:pse:psecon:2010-27 is not listed on IDEAS
  15. 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.
  16. Hübner, Malte, 2012. "The welfare effects of discriminating between in-state and out-of-state students," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 364-374.
  17. 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.
  18. 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.
  19. 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.
  20. Dreher, Axel & Poutvaara, Panu, 2011. "Foreign Students and Migration to the United States," World Development, Elsevier, vol. 39(8), pages 1294-1307, August.
  21. 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.
  22. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 3-13.
  23. 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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