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Education policy, student migration, and brain gain

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

Abstract

In this paper, we analyse how increasing student migration from a less developed to a developed country alters education policy in the developed country, and how it affects human capital and welfare in the two countries. We argue that a higher permanent migration probability, i.e., a higher probability that international students continue to stay in their host country after graduation, incentivises the host country to improve its education quality. A higher education quality in turn raises the human capital of all students, including returning students. As long as the permanent migration probability is not too large, this positive quality effect increases human capital and welfare in both the less developed country (LDC) and the developed host country. Thus, a brain gain to the LDC occurs. A decline in the taxes on labour income in the two countries can reinforce this brain gain, although the developed country then raises the tuition fees.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:wgspdp:201305
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    References listed on IDEAS

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    1. Ist „Sozialtourismus“ ein Unwort?
      by Marcel Weber in Think Ordo! on 2014-02-17 04:39:46

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    Cited by:

    1. Alexander Haupt & Tim Krieger & Thomas Lange, 2016. "Competition for the international pool of talent," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1113-1154, October.
    2. Elise S. Brezis, 2016. "Why Migrate: For Study or for Work?," Economies, MDPI, Open Access Journal, vol. 4(3), pages 1-12, August.
    3. 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.
    4. Krieger, Tim & Meierrieks, Daniel, 2014. "How to deal with international terrorism," Discussion Paper Series 2014-03, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.

    More about this item

    Keywords

    brain gain; education; human capital; mobility; return migration;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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