Student and Graduate Migration and its Effect on the Financing of Higher Education

31 Pages Posted: 30 Sep 2014

See all articles by Tina Haussen

Tina Haussen

Friedrich-Schiller-Universität Jena

Silke Uebelmesser

Friedrich-Schiller-Universität Jena - School of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: August 2015

Abstract

The number of international students worldwide has almost doubled in the last decade. In higher education systems that are partly tax-funded, a country’s labour force might not be willing to subsidize the education of international students who might move away after graduation. This paper analyses how student migration affects governmental decisions regarding the financing of higher education for 22 OECD countries for the period of 2000 to 2011. Based on fixed effects estimations, we find a significant positive correlation between the share of international students and the private funding share for higher education. This result is robust to changes in the specification, including estimations for country groups and for an expanded lag structure. The use of an instrumental variable approach supports a causal interpretation.

Keywords: Higher education, financing, international student migration

JEL Classification: H520, F220, I220, I280

Suggested Citation

Haussen, Tina and Uebelmesser, Silke, Student and Graduate Migration and its Effect on the Financing of Higher Education (August 2015). CESifo Working Paper Series No. 4963, Available at SSRN: https://ssrn.com/abstract=2502814 or http://dx.doi.org/10.2139/ssrn.2502814

Tina Haussen

Friedrich-Schiller-Universität Jena ( email )

Furstengraben 1
Jena, Thuringa 07743
Germany

Silke Uebelmesser (Contact Author)

Friedrich-Schiller-Universität Jena - School of Economics and Business Administration ( email )

Carl-Zeiss-Str. 3
D-07743 Jena
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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