The Impact of International Students on US Graduate Education

56 Pages Posted: 2 Sep 2016

See all articles by Kevin Shih

Kevin Shih

Department of Economics, Rensselaer Polytechnic Institute

Date Written: July 11, 2016

Abstract

This paper examines whether international students affect domestic enrollment in graduate education, focusing on a unique boom and bust in international enrollment at US universities from 1995-2005. Increases in international students expand domestic enrollment. These expansions arise from cross-subsidization ― foreign tuition creates Research and Teaching positions (RA/TA) for domestic students. Decreases in international students during the bust have no effect, as universities decrease RA/TA positions held by international students to equalize the loss in tuition revenue. Effects are identified using instruments that interact universities’ historical foreign presence with supply shocks ― population growth in sending countries for the boom, and post- 9/11 declines in visa issuance during the bust.

Keywords: International Students, Higher Education, Enrollment, Graduate Education

JEL Classification: F22, I21, I23, J11

Suggested Citation

Shih, Kevin, The Impact of International Students on US Graduate Education (July 11, 2016). Available at SSRN: https://ssrn.com/abstract=2832996 or http://dx.doi.org/10.2139/ssrn.2832996

Kevin Shih (Contact Author)

Department of Economics, Rensselaer Polytechnic Institute ( email )

110 8th Street
Troy, NY 12180
United States

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