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Paying out and crowding out? The globalisation of higher education

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  • Machin, Stephen
  • Murphy, Richard

Abstract

We investigate the rapid influx of overseas students into UK higher education and the impact on the number of domestic students. Using administrative data since 1994/5, we find no evidence of crowd out of domestic undergraduate students and indications of increases in the domestic numbers of postgraduate students as overseas enrolments have grown. We interpret this as a cross-subsidisation and establish causal findings using two methods. Firstly, we use the historical share of students from a sending country attending a university department as a shift-share instrument to predict enrolment patterns. Secondly, we use a change in Chinese visa regulations and exchange rates in combination with strong subject preferences as a predictor of overseas student growth.

Suggested Citation

  • Machin, Stephen & Murphy, Richard, 2014. "Paying out and crowding out? The globalisation of higher education," LSE Research Online Documents on Economics 60451, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:60451
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    Cited by:

    1. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2020. "A Passage to America: University Funding and International Students," American Economic Journal: Economic Policy, American Economic Association, vol. 12(1), pages 97-126, February.
    2. repec:cep:spccrp:03 is not listed on IDEAS
    3. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK," Working Papers hal-04141620, HAL.
    4. Chevalier, Arnaud & Isphording, Ingo E. & Lisauskaite, Elena, 2020. "Peer diversity, college performance and educational choices," Labour Economics, Elsevier, vol. 64(C).
    5. Yuheng Lin & Dooruj Rambaccussing & Yu Zhu, 2024. "The impact of international students in the UK on the cultural goods trade," French Stata Users' Group Meetings 2024 29, Stata Users Group.
    6. Kitty Stewart & Kerris Cooper & Isabel Shutes, 2019. "What does Brexit mean for social policy in the UK? An exploration of the potential consequences of the 2016 referendum for public services, inequalities and social rights," CASE - Social Policies and Distributional Outcomes Research Papers 03, Centre for Analysis of Social Exclusion, LSE.
    7. Diyi Li & Cheng Qian & Cory Koedel, 2020. "Nonresident Postsecondary Enrollment Growth And The Outcomes Of In‐State Students," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 736-757, October.
    8. repec:cep:spccrr:spdorp03 is not listed on IDEAS
    9. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    10. Bächli, Mirjam & Tsankova, Teodora, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Other publications TiSEM 33968781-3521-459e-86c9-f, Tilburg University, School of Economics and Management.
    11. Murat Demirci, 2020. "International students and labour market outcomes of US‐born workers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1495-1522, November.
    12. Bachli, Mirjam & Tsankova, Teodora, 2020. "Free movement of workers and native demand for tertiary education," CAGE Online Working Paper Series 515, Competitive Advantage in the Global Economy (CAGE).
    13. Escarce, José J. & Rocco, Lorenzo, 2021. "Effect of immigration on depression among older natives in Western Europe," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    14. Costas-Fernández, Julián & Morando, Greta & Holford, Angus, 2023. "The effect of foreign students in higher education on native students’ outcomes," European Economic Review, Elsevier, vol. 160(C).
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    16. Escarce, José J. & Rocco, Lorenzo, 2018. "Immigration and the Health of Older Natives in Western Europe," GLO Discussion Paper Series 228, Global Labor Organization (GLO).
    17. Stewart, Kitty & Cooper, Kerris & Shutes, Isabel, 2019. "What does Brexit mean for social policy in the UK? An exploration of the potential consequences of the 2016 referendum for public services, inequalities and social rights," LSE Research Online Documents on Economics 121548, London School of Economics and Political Science, LSE Library.
    18. Bächli, Mirjam & Teodora Tsankova, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Economics Working Paper Series 2019, University of St. Gallen, School of Economics and Political Science.
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    More about this item

    Keywords

    Overseas students; crowding out;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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